A securities class action has been filed against EQT Corporation (EQT) on behalf of a class consisting of all persons and entities other than Defendants that purchased EQT stock between June 19, 2017 through June 17, 2019. This case has been filed in the USDC – W.D.PA.
The Complaint alleges that during the Class Period, Defendants falsely stated that EQT’s acquisition of Rice, a rival gas producer, would yield billions of dollars in synergies based on purported operational benefits. Specifically, on June 19, 2017, Defendants announced that EQT had entered into an agreement to acquire Rice for $6.7 billion. Defendants represented that because Rice had an acreage footprint largely contiguous to EQT’s existing acreage, the acquisition would allow EQT to achieve “a 50% increase in average lateral [drilling] lengths” (as opposed to more traditional vertical well drilling). EQT claimed that as a result, the merger would result in $2.5 billion in synergies, including $100 million in cost savings in 2018 alone.
In total, as the truth about Defendants’ fraud gradually emerged, the price of EQTstock plummeted over 30%, erasing more than $2 billion in shareholder market capitalization.
The revelation of Defendants’ fraud caused Plaintiffs to suffersignificant economic harm. Plaintiffs bring this action to seek redr ess for the substantial damages they suffered as a result of Defendants’ securities fraud.