Progress To Settle With CVO Holders Over $42M Loss

Law360, New York (November 2, 2011, 3:59 PM EDT) -- Progress Energy Inc. struck a settlement Wednesday to end a lawsuit alleging it stiffed holders of its contingent value obligations some $42 million by adopting an improper tax position in 2005 in violation of an agreement related to an earlier merger.

Under the agreement, Progress will pay M.H. Davidson & Co. and Davidson Kempner International Ltd. 75 cents per share for all of its CVOs. The companies sued Progress in New York federal court in August, accusing it of breaching its obligation of good faith dealing...
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