Loews Corporation Announces Favorable Resolution of Boardwalk Pipelines Acquisition Litigation

Rhea-AI Summary

Loews (NYSE: L) has announced a favorable resolution in the litigation concerning its 2018 acquisition of minority partner interests in Boardwalk Pipelines. The Delaware Court of Chancery found no liability in connection with the acquisition, overturning a previous ruling from November 2021 that had awarded approximately $690 million plus interest to former minority unitholders. This decision follows the Delaware Supreme Court's reversal of the initial ruling in December 2022. Loews CEO James S. Tisch expressed satisfaction with the ruling, stating that the company believes the 2018 acquisition process was appropriate. The company hopes this ruling will resolve the litigation definitively.

Positive

• Delaware Court of Chancery found no liability for Loews in the Boardwalk Pipelines acquisition case
• Reversal of previous $690 million award against Loews, potentially saving the company significant funds
• Resolution of a major legal uncertainty for the company

Negative

• None.

News Market Reaction – L

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NEW YORK, Sept. 9, 2024 /PRNewswire/ -- Loews Corporation (NYSE: L) announced today that the Delaware Court of Chancery found no liability in connection with Loews's 2018 acquisition of the minority limited partner interests in its Boardwalk Pipelines subsidiary.

"We are very pleased that the Delaware Court of Chancery ruled in our favor and continue to believe that the process we undertook in 2018 to purchase the minority units in Boardwalk was appropriate. We are hopeful that this ruling will resolve the litigation," said James S. Tisch, President and CEO of Loews Corporation.

As a reminder, in November 2021 the Delaware Court of Chancery awarded the class of former minority unitholders in Boardwalk Pipelines approximately $690 million, plus interest, in the litigation. That ruling was reversed by the Delaware Supreme Court in December 2022 and the remaining open claims were remanded back to the Court of Chancery. Those remaining claims were decided today.

ABOUT LOEWS CORPORATION

Loews Corporation is a diversified company with businesses in the insurance, energy, hospitality, and packaging industries. For more information, please visit www.loews.com.

View original content:https://www.prnewswire.com/news-releases/loews-corporation-announces-favorable-resolution-of-boardwalk-pipelines-acquisition-litigation-302242578.html

SOURCE Loews Corporation

FAQ

What was the outcome of Loews 's Boardwalk Pipelines acquisition litigation?

The Delaware Court of Chancery found no liability for Loews in connection with its 2018 acquisition of minority partner interests in Boardwalk Pipelines, effectively ruling in Loews's favor.

How does the recent court ruling affect Loews 's (NYSE: L) previous legal obligations?

The recent ruling overturns a November 2021 decision that had awarded approximately $690 million plus interest to former minority unitholders of Boardwalk Pipelines, potentially saving Loews from this significant financial obligation.

When did the Delaware Supreme Court reverse the initial ruling against Loews ?

The Delaware Supreme Court reversed the initial ruling against Loews in December 2022, remanding the remaining open claims back to the Court of Chancery.

What did Loews 's CEO say about the recent court decision?

James S. Tisch, CEO of Loews , stated that the company is very pleased with the ruling and continues to believe that the 2018 process to purchase minority units in Boardwalk was appropriate. He expressed hope that this ruling will resolve the litigation.