June 27 (Reuters) - U.S. energy company EQT

agreed to pay $167.5 million to settle a class action lawsuit

filed by investors who claimed EQT overstated the benefits of

its $6.7 billion merger with Rice Energy in 2017, according to a

federal court filing on Thursday by the plaintiffs.

Officials at EQT were not immediately available for comment.

Plaintiffs in the case include the Government of Guam

Retirement Fund, Eastern Atlantic States Carpenters Annuity

Fund, Eastern Atlantic States Carpenters Pension Fund and

Cambridge Retirement System.

WHY IT'S IMPORTANT

When the deal was announced in 2017, it was expected to

create the biggest natural gas producer in the U.S. and was the

biggest deal ever for EQT as it looked to expand its gas

business. EQT is currently the No. 2 gas producer in the

country.

"The recovery - $167.5 million in cash - is notable as it is

(by far) the largest securities class action recovery ever in

the history of this District and the 14th largest in the history

of the Third Circuit," the plaintiffs said in a filing.

The district is the U.S. District Court Western District of

Pennsylvania. The Third Circuit is the U.S. Court of Appeals for

the Third Circuit.

The plaintiffs said in the filing that they reached the

settlement after almost six years of litigation and three

mediation sessions.

"The Settlement provides a favorable result for Class

Members because it allows for an immediate recovery and removes

the considerable possibility that Class Members could recover

significantly less or even nothing," according to the filing.

The case is In Re EQT Corporation Securities Litigation

filed in June 2019, according to the federal court website.