An affiliate of Talen Energy of Allentown is leading a group of plaintiffs in a $733 million lawsuit against PPL Corp. of Allentown.
Talen Montana Retirement Plan and the other plaintiffs said in a press release that they are seeking to recover funds allegedly extracted from Talen Montana’s business by PPL during the corporation’s ownership of PPL Montana between the years of 1999 and 2016.
The first lawsuit – a class-action suit filed by the Talen Montana Retirement Plan and other plaintiffs – claims that PPL and its directors improperly transferred $733 million in proceeds from the sale of its Montana hydroelectric assets, leaving Talen Montana without adequate funds to pay its obligations on its own.
In the second lawsuit, Talen Montana alleges that PPL and certain of its directors breached their fiduciary duties by causing PPL Montana to pay an improper $733 million dividend to PPL Corp. in November 2014, the amount of the net proceeds PPL received from the sale of its Montana hydroelectric asset.
The lawsuit claims the funds should have remained with Talen Montana to fulfill PPL’s pension and environmental obligations related to a power plant in Colstrip, Montana.
Talen Montana operates a four-unit, 2,094 megawatt coal-fired generation facility in Colstrip. Talen Montana owns 50 percent of Units 1 and 2 and has a 15 percent economic interest in Units 3 and 4 of the plant. The plant employs approximately 320 people in the town of Colstrip in Rosebud County, Montana.
About 770 active and former employees are covered by the plant’s pension plan.