The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of FirstEnergy Corp. (NYSE: FE) who purchased shares between February 21, 2017 and July 21, 2020. The action, which was filed in the United States District Court for the Southern District of Ohio, alleges that the Company violated federal securities laws.
In particular, the FirstEnergy lawsuit alleges that (1) the legislative “solutions” that defendants claimed would resolve problems with the Company’s nuclear facilities were centered on an illicit campaign to corrupt high-profile state legislators and thus secure legislation favoring the FirstEnergy; (2) over roughly three years, 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, which provided a $1.3 billion ratepayer-funded bailout to keep the Company’s failing nuclear facilities in operation; (3) 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 risks of reputational, legal, and financial harm; (4) as a result of defendants’ false statements and omissions, FirstEnergy insiders were able to sell more than $17 million worth of their FirstEnergy shares at artificially inflated prices.
Shareholders have until September 28, 2020 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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