According the docket posted on the site, on September 21, 1999, U.S. District Judge Joanna Seybert issued a Stipulation of dismissal of the action with prejudice. The case was settled in state court. The case was closed.
The class action lawsuit was filed on behalf of all former shareholders of Long Island Lighting Company who were solicited by a Joint Proxy Statement/Prospectus dated June 27, 1997 to vote at a special meeting of stockholders of LILCO held on August 7, 1997 on the proposed merger between among others, LILCO and Brooklyn Union Gas Company and who received MarketSpan Corp. common stock in exchange for LILCO common stock as a result of the merger.
The complaint alleges certain of LILCO’s former directors and officers with violation of Sections 14(a) and 20(a) of the Securities Exchange Act of 1934 and Rule 14a-9 promulgated thereunder. Specifically, the Proxy/Prospectus was materially false and misleading by failing to disclose that LILCO's board had approved payments of millions of dollars to certain of its directors and officers as one of its last acts prior to the consummation of the merger. Based on the information contained in the Proxy/Prospectus,in which the LILCO board communicated its recommendation and approval of the Merger, LILCO shareholders approved the merger and it was thereafter consummated on or about May 29, 1998, with MarketSpan acquiring ownership of LILCO's non-nuclear electric generating assets and operations and the natural gas business of LILCO and Brooklyn Union Gas Company.
However, on or around June 6, 1998, seven days after the merger transaction was consummated, plaintiff and other members of the Class received the shocking announcement that Governor George E. Pataki charged that LILCO's former directors had "robbed" their shareholders of $67 million in "secret" undisclosed executives bonuses and "golden parachutes," including $42 million to LILCO'S chairman and chief executive officer at all relevant times.