NEW YORK - (NewMediaWire) - August 28, 2020 - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in American Electric Power Company, Inc. (“AEP” or the “Company”) (NYSE:AEP) of the October 19, 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 AEP stock or options between November 2, 2016 and July 24, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/AEP. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
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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 AEP securities between November 2, 2016 and July 24, 2020 (the “Class Period”). The case, Nickerson v. American Electric Power Company, Inc. et al., No. 20-cv-04243 was filed on August 20, 2020, and has been assigned to Judge Sarah D. Morrison.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the Company covertly participated in “the largest public corruption case in Ohio history”; (2) the Company secretly funneled substantial funds to Ohio political organizations and politicians to bribe politicians to pass Ohio House Bill 6, which benefitted the Company and its coal-fired generation assets; (3) the Company partially funded a massive, misleading advertising campaign in support of HB6 and in opposition to a ballot initiative to repeal HB6 by passing substantial sums through a web of dark money entities and front companies in order to conceal the Company’s involvement; (4) the Company aided in subverting a citizens’ ballot initiative to repeal HB6; (5) as a result of the foregoing, defendants’ Class Period statements regarding the Company’s regulatory and legislative efforts were materially false and misleading; (6) as a result of the foregoing, the Company would face increased scrutiny; (7) the Company was subject to undisclosed risk of reputational, legal and financial harm; (8) the bribery scheme would jeopardize the benefits the Company sought by HB6; (9) as opposed to the Company’s repeated public statements regarding a move to clean energy, it sought a dirty energy bailout; (10) as opposed to the Company’s repeated public statements regarding protection of its customers’ interests, the Company sought an extra and state-mandated surcharge on its customers’ bills; and (11) as a result of the foregoing, defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
On July 25, 2020, the Columbus Dispatch published an article entitled “Columbus utility giant AEP funded dark money spending in HB 6 campaign.” The article alleged, among other things, that AEP “contributed $350,000 toward the campaigns now at the center of a racketeering and bribery case that ensnared House Speaker Larry Householder.”
On this news, the Company's stock price fell from $88.05 per share on July 24, 2020 to $83.26 per share on July 27, 2020: a $4.79 or 5.44% 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 AEP’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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