HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages FirstEnergy (FE) Investors with Significant Losses to Contact Its Attorneys, Securities Fraud Case Filed
San Francisco--(Newsfile Corp. - July 31, 2020) - Hagens Berman urges FirstEnergy Corp. (NYSE: FE) investors who have suffered significant losses to submit their losses now. A securities fraud class action lawsuit has been filed and certain investors may have valuable claims.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding FirstEnergy's internal controls, business practices and prospects. Specifically, Defendants touted FirstEnergy's legislative "solutions" to problems with its nuclear facilities, while concealing that these "solutions" centered on an illicit campaign to corrupt high-profile state legislators 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, in order to secure the passage of favorable legislation. In addition, Defendants falsely represented that they were legally compliant. Defendants' fraud artificially inflated FirstEnergy stock, enabling Company insiders to sell more than $17 million worth of their personally held shares.
But on July 21, 2020, federal agents announced the arrest of Householder and four others persons, including a prominent FirstEnergy lobbyist, in connection with a $60 million racketeering and bribery scheme. On this news, the price of FirstEnergy stock plummeted 45% in a single trading day.
"We're focused on investors' losses and proving FirstEnergy misled investors about the purpose and legality of Company expenditures," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of FirstEnergy and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding FirstEnergy should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email FE@hbsslaw.com.
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