FX.co ★ TC Energy To Appeal Delaware Court Rulings In 2016 Columbia Pipeline Acquisition Suit

TC Energy Corp. (TRP, TRP.TO) announced on Wednesday its strong disagreement with the Delaware Chancery Court's final decision regarding the allocation of liability in an ongoing class action lawsuit related to its 2016 acquisition of Columbia Pipeline Group Inc. TC Energy intends to appeal the Court's decision, expecting the appeal process to extend through 2024 and conclude by mid-2025.

In a previous ruling issued in June 2023, the Court found that the former CEO and CFO of Columbia Pipeline Group had breached their fiduciary duties to the company's stockholders and that TC Energy had aided and abetted these breaches. TC Energy contends that the Court committed significant factual and legal errors in its decisions and plans to appeal to the Delaware Supreme Court, as stated in their official release.

On May 15, 2024, the Court granted damages amounting to US$398.4 million to Columbia Pipeline Group stockholders, splitting the liability equally between the former CEO and CFO of Columbia Pipeline Group and TC Energy. Consequently, TC Energy's share of the damages is set at US$199.2 million, in addition to an estimated US$179.5 million in pre- and post-judgment interest.

TC Energy continues to dispute several of the Court's conclusions, asserting that the ruling deviates from established Delaware law.