NEW YORK - (NewMediaWire) - August 27, 2020 - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in FirstEnergy Corp. ("FirstEnergy" or the "Company")(NYSE:FE) of the September 28, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in FirstEnergy stock or options between February 21, 2017 and July 21, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/FE. There is no cost or obligation to you.
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The lawsuit has been filed in the U.S. District Court for the Southern District of Ohio on behalf of all those who purchased FirstEnergy common stock between February 21, 2017 and July 21, 2020 (the "Class Period"). The case, Owens v. FirstEnergy Corp. et al., No. 20-cv-03785 was filed on July 28, 2020, and has been assigned to Chief Judge Algenon L. Marbley.
As detailed below, the lawsuit focuses on whether the Company and its executives violated federal securities laws by issuing materially false and misleading statements regarding FirstEnergy’s internal controls, business practices and prospects. Specifically, the complaint alleges 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 in order to secure legislation favoring the Company. The complaint also alleges that, throughout the Class Period, 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 ("HB6"). The bill provided a $1.3 billion ratepayer-funded bailout to keep the Company’s failing nuclear facilities in operation.
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 federal criminal complaint and affidavit detailed a pay-to-play scheme in which FirstEnergy brazenly corrupted every facet of the legislative process in order to ensure the passage of HB6.
On this news, FirstEnergy's share price fell from $34.25 per share on July 21, 2020 to a closing price of $27.09 on July 22, 2020: a $7.16 or a 20.91% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative 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. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding FirstEnergy’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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