El Paso Corporation, a provider natural gas and related energy products, has reached $273 million settlements of its shareholder class action and derivative lawsuits.
El Paso revealed that it has reached agreement in principle to settle all shareholder class action litigation filed on behalf of purchasers of El Paso securities between February 22, 2000 and February 17, 2004.
El Paso also settled an associated derivative lawsuit that made similar claims to those in the class action litigation. The company said the settlement involved the payment of approximately $17 million which was fully funded by its insurers, of which about $12 million will be used to fund the settlement of the shareholder litigation. The court, El Paso said, has approved this settlement.