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Judge Approves Distribution for Settlement of $ 192 Million Nuclear Project | Business

Columbia, South Carolina (AP) — Investors who lost their property in the failure of a multi-billion dollar reactor construction contract in South Carolina will soon reach $ 192 million under a recently approved distribution. You will start to see some of the settlements.

Last week, a federal judge was SCANA Corp, a former parent company of South Carolina Electric and Gas. Approved a plan to diversify funds among former shareholders of. According to investor lawyers, the settlement itself was the recovery of the largest securities class proceeding in South Carolina when the judge approved it last year.

Utility company announced in summer 2017 that it would close its reactor construction project at the VC Summer Nuclear Power Plant in Jenkinsville, about 30 miles (48 km) north of Colombia, following the bankruptcy of its prime contractor Westinghouse. After that, I was involved in a controversy.

By that time, SCANA and the project’s minority partner, the state-owned utility Santee Cooper, had spent nearly $ 10 billion on it. The failure cost payers and investors billions of dollars and unemployed nearly 6,000 people.

The abandonment caused multiple proceedings, and some payers were misleading when company executives knew the project was destined and consumers and regulators petitioned for a series of price increases. Insisted. State and federal authorities have begun an investigation, with two top-level SCANA executives pleaing guilty.

Over 737,000 SCE & G customers have already paid more than $ 2 billion for the project, which did not generate electricity. After a legislator passed a temporary rate cut that knocked out about $ 25 a month from the average home customer’s bill, the customer finally saw the retroactive credit applied to the bill.

SCANA shareholders have accused the company of ensuring that the project outperforms the board, despite costs and delays being out of control. As a result, investors claimed that SCANA shares were traded at artificially soaring prices. This number plummeted when the project was abandoned. According to investor lawyers, SCANA shares were trading at $ 76.12 per share in July 2016, but fell by more than 50% following news of a project failure and the announcement of a survey surrounding it. Did.

The settlement includes $ 160 million in cash and the remaining $ 32.5 million is covered by Dominion Energy’s cash or shares. The Virginia-based company acquired SCANA in 2019, paying more than $ 6.8 billion to buy the company’s shares and assuming consolidated net liabilities of $ 6.6 billion.

Depending on the order, the claimant must either cash the check or forfeit the prize within 120 days.

Marlon Kimpson, a state senator and lawyer representing investors, said:

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Megkinard can be contacted on Twitter http://twitter.com/MegKinnardAP..

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Judge Approves Distribution for Settlement of $ 192 Million Nuclear Project | Business

Source link Judge Approves Distribution for Settlement of $ 192 Million Nuclear Project | Business

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