A federal judge has approved a $32.5 million settlement in a class action lawsuit brought by shareholders of Westar Energy.
US Judge Julie Robinson approved the settlement yesterday. Westar, the largest electric utility in Kansas, will pay $1.25 million, with insurers covering the rest.
Shareholders filed suit against the company in 2003. They said they weren't given details of the company's proposed merger with a New Mexico utility and plan to spin its unregulated affiliates into a separate company.
The Kansas Corporation Commission shot down the deal, hurting the stock price.
An internal investigation later presented a host of alleged misdeeds by former chief executive David Wittig, former executive vice president Douglas Lake and a number of former and current executives.