[Robert357]

The company's claim against California was made by its Allegheny Energy Supply Co. subsidiary. It was filed with the California Victim Compensation and Government Claims Board

This could make for some interesting footnotes in the billions of dollars of debt official statements that California will be floating soon.

[Robert357]

I didn't see anyone else post this and decided that a $5 Billion claim against the State of California was a significant story worthy of breaking news status and posting.

While I think this is a long shot for Allegheny, it could be reasonable enough to force the state into a settlement just to get it off of its official statements in bond issues.

[Centurion2000]

They should move to file liens on the Capital Building in Sacramento, all personal holdings (cars, property) of state employees and all state park lands.

If they don't the state will stiff them and fall behind the state legal system.

This could get really interesting.

[randita]

I'd think this would be a hard case for Allegheny to prove. Although the decline in Allegheny's stock value might have occurred concurrently with CA's effort to renege on the legal contracts, that alone wouldn't be proof that CA's underhanded tactics actually CAUSED Allegheny's problems.

This is probably a smokescreen by Allegheny to force CA to get off Allegheny's back and make a reasonable deal. It probably won't work.