Robbins Geller Rudman & Dowd LLP (https://www.rgrdlaw.com/cases-firstenergy-corp-class-action-lawsuit.html) today announced that it filed a class action seeking to represent purchasers of FirstEnergy Corp. (NYSE:FE) common stock during the period between February 21, 2017 and July 21, 2020 (the “Class Period”). This action was filed in the Southern District of Ohio and is captioned Owens v. FirstEnergy Corp., No. 20-cv-3785.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased FirstEnergy common stock during the Class Period to seek appointment as lead plaintiff in the FirstEnergy class action lawsuit. A lead plaintiff acts on behalf of all other class members in directing the FirstEnergy class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the FirstEnergy class action lawsuit. An investor’s ability to share in any potential future recovery of the FirstEnergy class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff in the FirstEnergy class action lawsuit, you must move the Court no later than 60 days from today. If you wish to discuss the FirstEnergy class action lawsuit or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Brian E. Cochran of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at bcochran@rgrdlaw.com. You can view a copy of the complaint as filed at https://www.rgrdlaw.com/cases-firstenergy-corp-class-action-lawsuit.html.
The FirstEnergy class action lawsuit charges FirstEnergy and certain of its current and former officers with violations of the Securities Exchange Act of 1934. FirstEnergy is an electric utility company with subsidiaries and affiliates involved in the distribution, transmission and generation of electricity, as well as energy management and other energy-related services. Its ten electric utility operating companies serve more than six million customers in Ohio, Pennsylvania, West Virginia, Virginia, Maryland, New Jersey, and New York. The Company also owned and operated two nuclear power plants in the State of Ohio, the Perry Nuclear Generating Station and the Davis-Besse Nuclear Power Station.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding FirstEnergy’s internal controls, business practices and prospects. Specifically, defendants touted FirstEnergy’s legislative “solutions” to problems with its nuclear facilities, but failed to disclose that these “solutions” centered on an illicit campaign to corrupt high-profile state legislators in order to secure legislation favoring the Company. Over a nearly three-year period, FirstEnergy and its affiliates funneled more than $60 million to prominent state politicians and lobbyists, including Ohio Speaker Larry Householder, in order to secure the passage of Ohio House Bill 6 (“HB6”), which provided a $1.3 billion ratepayer-funded bailout to keep the Company’s failing nuclear facilities in operation. In addition, defendants falsely represented that they were complying with state and federal laws and regulations regarding regulatory matters throughout the Class Period, exposing the Company and its investors to the extreme undisclosed risks of reputational, legal and financial harm. As a result of defendants’ false statements and omissions, the price of FirstEnergy stock was artificially inflated to a high of more than $50 per share during the Class Period, and Company insiders were able to sell more than $17 million worth of their FirstEnergy shares at these artificially inflated prices.
Then on July 21, 2020, federal agents announced the arrest of Householder and four others persons, including a prominent FirstEnergy lobbyist, in connection with a $60 million racketeering and bribery scheme. The 82-page criminal complaint and affidavit detailed an alleged pay-to-play scheme in which FirstEnergy corrupted every facet of the legislative process in order to ensure the passage of HB6, including defending the bill against a citizens’ ballot initiative. Prosecutors described the case as involving the “‘largest bribery, money-laundering scheme’” in Ohio history. On this news, the price of FirstEnergy stock plummeted, trading as low as $22.85 per share on July 22, 2020, down 45% from its closing price of $41.26 per share on July 20, 2020.
The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20200728006050/en/
Contacts:
Brian E. Cochran, 800-449-4900
bcochran@rgrdlaw.com
