TC Energy to Appeal Delaware Court's $200 Million Liability Ruling in Columbia Pipeline Acquisition Lawsuit
(P&GJ) — TC Energy Corp. strongly disagrees with the final decision issued on May 15 by the Delaware Chancery Court, which allocated liability for previously determined damages in an ongoing class-action lawsuit related to TC Energy’s 2016 acquisition of Columbia Pipeline Group Inc., the company said in a press release on May 15.
The Court had previously held, in a decision issued in June 2023, that the former CEO and CFO of Columbia breached their fiduciary duties to Columbia stockholders, and that TC Energy aided and abetted those breaches. TC Energy believes the Court made material errors of fact and law in its decisions and will appeal the determinations to the Delaware Supreme Court.
In its May 15 decision, the Court awarded the Columbia stockholders damages of $398.4 million and allocated responsibility for that award in the amount of 50% to the former Columbia CEO and CFO, collectively, and 50% to TC Energy. TC Energy continues to disagree with many of the Court’s findings and believes the ruling departs from established Delaware law. TC Energy’s allocated share of the damages is $199.2 million, plus an estimated $179.5 million in pre- and post-judgment interest.
TC Energy will appeal the Court’s decision and anticipates that the appeal will proceed through 2024 and conclude by mid-2025. TC Energy will post a bond in lieu of paying the damages award pending the outcome of its appeal.
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