A Tulsa law firm has filed a federal class action lawsuit against Williams and Energy Transfer Equity for allegedly misrepresenting aspects of their proposed merger. Pinkerton Law filed the class action lawsuit, John Bumgarner v. The Williams Companies, Inc. and Energy Transfer Equity, L.P. and was filed in the U.S. District Court for the Northern District of Oklahoma.
The firm filed the suit on behalf of Williams common stockholders. The Amended Complaint alleges the knowing misrepresentation by one or more executive officers and certain directors of The Williams Companies and one or more of the executive officers of Energy Transfer Equity. Not only does the suit allege the misrepresentation of $2 billion in annual synergies, but also challenges certain specifics of the deal.
Overall, the suit alleges that the synergies don’t add up and contradict earlier reports and statements from Williams and ETE. It also contends that the promise the merger would not affect credit rates was false.
The Pinkerton lawyers are asking for a preliminary and a permanent injunction because the deal would harm Williams shareholders, but because the deal has yet to be consummated, no damage has occurred yet.
The law firm has invited shareholders to join the lawsuit within the next 60 days.
