Securities class action litigation has been filed on behalf of investors in the common stock of FirstEnergy Corp. (“FirstEnergy” or the “Company”) (NYSE: FE). If you purchased the common stock of FirstEnergy between February 21, 2017 and July 21, 2020, inclusive (the “Class Period”), you may move the court for appointment as lead plaintiff by no later than September 28, 2020.
You may retain Lieff Cabraser Heimann & Bernstein, LLP, or other attorneys, as your counsel in the action. Recognized by the National Law Journal as one of the nation’s top plaintiffs’ law firms, Lieff Cabraser is committed to safeguarding the rights of investors and upholding the integrity of the market. We have significant experience and a successful track record of representing institutional and individual investors in securities and financial fraud litigation.
First Energy investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should use the form below or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the FirstEnergy Securities Class Litigation
FirstEnergy, headquartered in Akron, Ohio, is an electric utility company. The action alleges that, during the Class Period, defendants made materially false and misleading statements regarding FirstEnergy’s internal controls, business practices and prospects. In particular, defendants boasted of FirstEnergy’s legislative “solutions” to difficulties with its nuclear facilities, but failed to disclose that those “solutions” revolved around an illicit campaign to influence state lawmakers to support legislation favoring the Company. For nearly three years, FirstEnergy and its affiliates channeled more than $60 million to state politicians and lobbyists, including Ohio Speaker Larry Householder, to ensure the passage of Ohio House Bill 6 (“HB 6”), which provided a $1.3 billion ratepayer-funded bailout of FirstEnergy’s failing nuclear facilities. Defendants also falsely stated that they were in compliance with state and federal laws and regulations throughout the Class Period, when in reality they were exposing the Company and its investors to undisclosed risks of legal, financial, and reputational damage.
On July 21, 2020, federal agents announced the arrest of Speaker Householder and four other persons, including a lobbyist for FirstEnergy, in connection with a $60 million racketeering and bribery scheme. The criminal complaint and affidavit described an alleged pay-to-play scheme in which FirstEnergy influenced the legislative process in order to guarantee the passage of HB 6, including by defending the bill against a citizens ballot initiative to overturn the bill. Prosecutors described the case as the “largest bribery, money-laundering scheme” in Ohio history. On this news, the price of FirstEnergy stock fell $7.01 per share, or almost 17%, from its closing price of $41.26 on July 20, 2020, to close at $34.25 on July 21, 2020, on heavy trading volume.
On July 22, 2020, Cleveland.com published an article providing additional details regarding the Company’s illicit actions in connection with the scheme. On this news, the price of FirstEnergy stock dropped an additional $7.16, or 20.9% from its closing price of $34.25 per share on July 21, 2020, to close at $27.09 on July 22, 2020, on extremely heavy trading volume.
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Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for fourteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity.” Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” Benchmark Litigation has named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America.”