Early on, the complaint for this class action says that this case “arises out of yet another chapter in Montana’s long history of out-of-state corporations exploiting Montana’s resources, shipping the profits out of state, abandoning operations in the State, and attempting to shift responsibility to the State to clean up those abandoned operations.” The defendants are PPL Corporation and related companies, plus three individuals.
The class for this action is current and contingent creditor of Talen Montana who (1) have been defrauded under statutory fraudulent transfer law and common law due to the Distribution, and (2) have suffered harm or will suffer foreseeable harm as a result of the defendants concerted actions, civil conspiracy, and unjust enrichment from the Distribution, and who therefore ask for a constructive trust to remedy the unjust enrichment.
When Montana deregulated its electricity market, PPL bought Montana Power Company’s (MPC’s) assets, through an entity called PPL Montana.
The complaint alleges, “PPL took full advantage of historically high electricity prices that followed deregulation … extracting substantial profits from its Montana operations, including from Montana electricity customers through energy sales to MPC” and later, another Montana utility, NorthWestern Corp. PPL Montana, the complaint says, then sent these profits to PPL and affiliates in Pennsylvania, “totaling at least $325 million through 2012.”
By 2012, the complaint claims, the electricity market in the area had fallen. The complaint alleges that PPL Montana had become “at best a break-even operation with a deteriorating financial outlook. Moreover, it faced significant future liabilities due to environmental remediation obligations primarily connected to its coal-fired assets.”
PPL Montana then sold its “only valuable asset[,]” its hydroelectric facilities, for $900 million and once again sent the money to PPL and related companies. This rendered PPL Montana insolvent and unable to pay for environmental remediation or meet other obligations, including those to the employee pension plan.
All PPL Montana had left were its coal-fired plants, which were expected to have “negative cash flows” and which still had to meet environmental and other obligations.
The complaint alleges, “The scheme to strip all value out of PPL Montana … constitutes a fraudulent transfer, both actual and constructive.”
In 2015, PPL Montana was spun off of PPL and became a subsidiary of a new company, Talen Energy Corporation. It is now called Talen Montana.
The complaint now asks the court to require PPL to return the money it got from PPL Montana in order to meet that company’s obligations. The lead plaintiff in this case is Talen Montana’s pension plan.
Article Type: LawsuitTopic: Civil Conspiracy
Most Recent Case Event
PPL Montana Sends Profits Out of State, Leaves Liabilities Complaint
May 19, 2022
Early on, the complaint for this class action says that this case “arises out of yet another chapter in Montana’s long history of out-of-state corporations exploiting Montana’s resources, shipping the profits out of state, abandoning operations in the State, and attempting to shift responsibility to the State to clean up those abandoned operations.” The defendants are PPL Corporation and related companies, plus three individuals.
PPL Montana Sends Profits Out of State, Leaves Liabilities ComplaintCase Event History
PPL Montana Sends Profits Out of State, Leaves Liabilities Complaint
May 19, 2022
Early on, the complaint for this class action says that this case “arises out of yet another chapter in Montana’s long history of out-of-state corporations exploiting Montana’s resources, shipping the profits out of state, abandoning operations in the State, and attempting to shift responsibility to the State to clean up those abandoned operations.” The defendants are PPL Corporation and related companies, plus three individuals.
PPL Montana Sends Profits Out of State, Leaves Liabilities Complaint