NEW YORK, Aug. 22, 2020 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against FirstEnergy Corporation ("FirstEnergy" or the "Company") (NYSE: FE) and certain of its officers. The class action, filed in United States District Court for the S, and indexed under 20-cv-06896, is on behalf of a class consisting of all persons and entities other than Defendants who purchased or otherwise acquired FirstEnergy securities between February 21, 2017, and July 21, 2020, inclusive (the "Class Period"). Plaintiff seeks to pursue remedies against FirstEnergy and certain of the Company's current and former most senior executives under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act"), and Rule l0b-5 promulgated thereunder.
If you are a shareholder who purchased FirstEnergy securities during the class period, you have until September 25, 2020, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
Defendant FirstEnergy is headquartered in Akron, Ohio. The Company 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. FirstEnergy's ten electric utility operating companies comprise one of the U.S.'s largest investor-owned utilities, serving 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 Ohio—the Perry Nuclear Generating Station and the Davis-Besse Nuclear Power Station.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational, and compliance policies. Specifically, Defendants failed to disclose to investors that: 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 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 ("Householder"), 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 undisclosed risks of reputational, legal, and financial harm.
The truth began to be revealed on July 21, 2020. That day, federal agents announced the arrest of Householder and four other persons, including a prominent FirstEnergy lobbyist, in connection with a $60 million racketeering and bribery scheme. The 82-page criminal complaint and affidavit detailed a pay-to-play scheme in which FirstEnergy corrupted the legislative process to ensure the passage of HB6. Prosecutors described the case as involving the "largest bribery, money-laundering scheme" in Ohio history.
On this news, FirstEnergy's stock price fell, trading as low as $22.85 per share on July 22, 2020, down nearly 45% from its closing price of $41.26 per share on July 20, 2020, damaging FirstEnergy shareholders.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
SOURCE Pomerantz LLP