|Company name||FirstEnergy Corp.|
|Status||Class Action Complaint Filed|
NEW YORK, September 16, 2020 – Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, announces that a class action lawsuit has been filed in the United States District Court for the Southern District of Ohio on behalf of investors that purchased FirstEnergy Corp. (NYSE: FE) common stock between February 21, 2017 and July 21, 2020 (the “Class Period”). Investors have until September 28, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On July 21, 2020, federal agents announced the arrest of Ohio Speaker Larry Householder and four other persons, including a prominent FirstEnergy lobbyist, in connection with a $60 million racketeering and bribery scheme.
On this news, the Company’s share price fell by $7.01, or 17%, to close at $34.25 per share on July 21, 2020.
On July 22, 2020, Cleveland.com published an article entitled “FirstEnergy was relentless in quest to have Ohio legislature bail out the utility’s nuclear plants,” which provided further details regarding FirstEnergy’s illicit activities.
On this news, the Company’s share price fell by $7.16, or 21%, to close at $27.09 per share on July 22, 2020.
The complaint, filed on July 28, 2020, alleges that throughout the Class Period defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, defendants failed to disclose to investors: (1) that FirstEnergy and its representatives and affiliates had orchestrated a $60 million campaign to corrupt the political process in order to secure the passage of legislation favoring the Company and its affiliates; (2) that FirstEnergy and its representatives and affiliates had secretly funneled tens of millions of dollars to Ohio politicians to bribe those politicians in order to secure votes in favor of Ohio House Bill 6 (“HB6”), a $1.3 billion ratepayer bailout for FirstEnergy’s unprofitable nuclear facilities; (3) that FirstEnergy and its representatives and affiliates had conducted a massive, misleading advertising campaign in support of HB6 and in opposition to a ballot initiative to repeal HB6 by passing millions of dollars through an intricate web of “dark money” entities and front companies in order to conceal the Company’s involvement; (4) that FirstEnergy and its representatives and affiliates had subverted a citizens’ ballot initiative to repeal HB6 by, among other unscrupulous tactics, hiring more than 15 signature gathering firms (and thus conflicting them out of supporting the initiative) and bribing ballot initiative insiders and signature collectors; (5) that, as a result of the foregoing, defendants’ Class Period statements regarding FirstEnergy’s regulatory and legislative efforts were materially false and misleading; and (6) that, as a result of the foregoing, FirstEnergy was subject to an extreme, undisclosed risk of reputational, legal and financial harm.
If you purchased First Energy shares during the Class Period and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Melissa Fortunato or Marion Passmore by email at email@example.com, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.