Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased FirstEnergy Corp. ("FirstEnergy" or the "Company") (NYSE: FE) common stock between February 21, 2017 and July 21, 2020, inclusive (the “Class Period”). FirstEnergy investors have until September 28, 2020 to file a lead plaintiff motion.
Investors suffering losses on their FirstEnergy investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
On July 21, 2020, media reported, in connection with the arrest of an Ohio lawmaker, that FirstEnergy engaged in an illegal scheme to have taxpayers bail out the Company's nuclear power plants. The Company also disclosed that it had received subpoenas in connection with an investigation into the passage of Ohio House Bill 6.
On this news, the Company's share price fell $7.01, or 17%, to close at $34.25 per share on July 21, 2020, on unusually heavy trading volume.
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 $7.16, or 21%, to close at $27.09 per share on July 22, 2020, on unusually heavy trading volume.
The complaint filed in this class action 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 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 FirstEnergy common stock, have information or 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 Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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