Court Gives Preliminary Approval of KeySpan Settlement.BROOKLYN/HICKSVILLE, N.Y.--(BUSINESS WIRE)--April 28, 1999-- KeySpan Energy (NYSE NYSE See: New York Stock Exchange :KSE KSE Karachi Stock Exchange KSE Kuwait Stock Exchange KSE Korea Stock Exchange KSE Kernel Scheduler Entities KSE Kill Switch Engage (band) KSE Kuat Systems Engineering (Star Wars) ) has agreed to settle 13 class action lawsuits and two derivative actions initiated by shareholders of the Long Island Lighting Company (LILCO LILCO Long Island Lighting Company ) and Brooklyn Union after the merger of the two companies in May 1998. The lawsuits, which had been filed in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of State Supreme Court, Nassau County, against each of the former officers and directors of LILCO and KeySpan, arose from compensation payments made to LILCO executives at the time of the merger. Under the proposed settlement, $7.9 million will be distributed (less plaintiffs' attorneys' fees) to the former LILCO and Brooklyn Union shareholders. KeySpan will provide specific details to its shareholders after the Court has approved the settlement. The company's insurance carrier will cover the entire $7.9 million settlement. In addition, KeySpan Energy has agreed to implement certain corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. and executive compensation procedures. If the Court approves the settlement, the parties will apply in the United States District Court United States District Court In the U.S., any of the 94 trial courts of general jurisdiction in the federal judicial system. Each state, as well as the District of Columbia and the Commonwealth of Puerto Rico, has at least one federal district court. , Eastern District of New York, for an order and final judgment dismissing three related federal actions, based on the binding effect of the state court judgment. The New York State Attorney General The New York State Attorney General is the chief legal officer of the State of New York. The office has been in existence in some form since 1626, under the Dutch colonial government of New York. has also concluded his investigation of the executive compensation matter, and has decided to take no action against the former officers and directors. The Attorney General recommended that the Court approve the settlement of the shareholder action. KeySpan and its insurance carrier will evenly divide the $1.5-million cost of the State's investigation. KeySpan Energy operates two utilities that distribute natural gas under the Brooklyn Union name to approximately 1.6 million customers in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. and on Long Island. Other KeySpan companies market a portfolio of energy-related services in the Northeast, operate electric-generation plants on Long Island, and provide operating and customer services to one-million electric customers of the Long Island Power Authority. KeySpan's unregulated energy activities focus on three principal lines of business: gas exploration and development, primarily through The Houston Exploration Company; domestic pipelines and storage; and international activities, including gas-processing in Canada, and gas pipelines and local-distribution in Northern Ireland. For more information, visit KeySpan Energy's web site at: www.keyspanenergy.com |
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