Attention investors who purchased shares of FirstEnergy Corp. between February 21, 2017 and July 21, 2020:
Rigrodsky & Long is investigating claims brought in a securities fraud class action complaint against FirstEnergy Corp. ("FirstEnergy" or the "Company") concerning whether FirstEnergy and certain of the Company's directors and/or officers made materially false and misleading statements and failed to disclose materially adverse facts during the period of February 21, 2017 and July 21, 2020, inclusive (the "Class Period"), concerning FirstEnergy's business, operations, and prospects. These misrepresentations and omissions artificially inflated the price of FirstEnergy's shares throughout the Class Period.
Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Southern District of Ohio on behalf of all persons or entities that purchased the common stock of FirstEnergy Corp. (“FirstEnergy” or the “Company”) (NYSE: FE) between February 21, 2017 and July 21, 2020, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
If you purchased shares of FirstEnergy during the Class Period, or purchased shares prior to the Class Period and still hold FirstEnergy, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Seth D. Rigrodsky or Timothy J. MacFall at Rigrodsky & Long, P.A., 300 Delaware Avenue, Suite 1220, Wilmington, DE 19801, by telephone at (888) 969-4242, by e-mail at firstname.lastname@example.org.
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations 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 (“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.
According to the Complaint, on July 21, 2020, 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 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, shares of FirstEnergy fell almost 17%, closing at $34.25 per share on July 22, 2020, on heavy trading volume.
If you wish to serve as lead plaintiff, you must move the Court no later than September 28, 2020. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Rigrodsky & Long, P.A., with offices in Delaware and New York, has recovered hundreds of millions of dollars on behalf of investors and achieved substantial corporate governance reforms in numerous cases nationwide, including federal securities fraud actions, shareholder class actions, and shareholder derivative actions.
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