KeySpan Obtains Class Action Dismissal

Skadden secured a victory for electric company KeySpan Corporation with the dismissal of a putative class action seeking at least $118 million in damages before trebling for alleged violations of federal antitrust law and New York state statutory and common law. The claims were related to a swap agreement between KeySpan and co-defendant Morgan Stanley Capital Group concerning the New York City electric-generation capacity market, which the plaintiffs claimed created excess charges for the city’s retail electricity customers. On March 22, Judge Shira Scheindlin in the U.S. District Court for the Southern District of New York granted KeySpan’s motion to dismiss, with prejudice.