Retirement System Loses Appeal in Lawsuit Against Tulsa’s Williams Companies

A three-judge panel of the U.S. 10th Circuit Court of Appeals in Denver has dismissed the appeal of the Rhode Island Employees’ Retirement System in a lawsuit against Tulsa’s Williams Companies, Williams Partners L.P. Williams Partners GP and company executives.

The lawsuit was filed in March 2016 over the failed proposed merger of Williams and Dallas-based Energy Transfer Equity L.P. The retirement system had purchased units of Williams Partners L.P. between May 13, 2015 when Williams announced it planned to merge with Williams Partners L.P. and June 19, 2015 when ETE announced it would merge with Williams but not with Williams Partners L.P.

The retirement system filed suit after the value of the units it bought dropped, claiming it had paid an excessive price because Williams had not disclosed its merger discussions with ETE.

The original suit was dismissed the the Rhode Island Employees’ Retirement system filed an appeal, claiming violations of federal securities law. But in a ruling this week, the 10th Circuit 3-judge panel said the system failed to adequately allege facts establishing a duty to disclose such discussions.