What is the expected timeline for the settlement to be finalized and any related disclosures to be made?

Expected timeline

The settlement notice states that the class‑action settlement is slated to be finalized by the end of 2025 (the parties have agreed to close the transaction before the close of the calendar year). The parties also committed to filing a formal disclosure with the SEC no later than 30 days after the settlement is finalized – typically as a supplemental filing to Energy Transfer’s 2025 Form 10‑K or in a dedicated Form 8‑K, whichever occurs first.

Trading implications

The pending resolution removes a lingering legal risk for Energy Transfer (ET) that has been weighing on the stock’s risk‑adjusted return. Once the settlement is confirmed and disclosed, any contingent liability tied to the class action will be reflected in the company’s next filing, which should clarify the size of the settlement expense (generally a modest, non‑material amount for a company of ET’s size). In the short‑term, the market is likely to price in a modest upside as investors roll back the “legal‑risk discount” that has kept ET’s valuation modest relative to peers (e.g., Kinder Morgan, Williams). The practical trading play is to look for a near‑term rebound—if ET trades at or below its 20‑day moving average and the broader energy sector remains stable, a long‑position with a tight stop (e.g., 5‑% below the entry price) could capture the upside once the settlement confirmation is filed.

Risk‑adjusted recommendation

- If ET is currently trading below its 50‑day SMA and the broader energy index is flat or bullish, consider a modest long position (1‑2 % of portfolio) with a 5‑% stop‑loss.

- If the stock is already priced for a settlement (i.e., price has already run up on the news), stay on the sidelines until the final filing, then evaluate the disclosed settlement amount. A material settlement (≥ $200 M) could trigger a short‑term pull‑back, while a modest settlement (< $50 M) would likely support a continuation rally.

In short, the settlement is expected to be finalized by December 2025, with required disclosures filed within 30 days after that date, and the market should respond positively once the legal cloud clears, offering a modest, risk‑controlled buying opportunity.