Edelson Lechtzin LLP has commenced a derivative case on behalf of shareholders of FirstEnergy Corporation alleging that the Board of Directors and certain officers of the corporation have breached their fiduciary duties to the company, were unjustly enriched, wasted corporate assets, and committed various violations of federal securities laws. It is further alleged that the various defendants engaged in a concerted effort to curtail losses from nuclear energy operations managed by a subsidiary in order to keep their positions with the company and to increase their compensation. In furtherance of their scheme Defendants sanctioned the corporate policy of illegal payments to government officials including the Ohio House Speaker, Larry Householder, and other individuals, that resulted in a significant reduction in shareholder value when it was subsequently exposed.
On July 17, 2020, U.S. officials filed a criminal complaint of conspiracy against Householder and others in the Southern District of Ohio arising out of the illegal payments made by FirstEnergy causing the stock of the Company to decline by up to 45% of its value within hours of the announcement.
The firm seeks to hold accountable the directors and officers of FirstEnergy whose actions caused and/or permitted the wrongdoing that the Company has engaged in.
If you wish to discuss this case, please click here to submit your contact information. The name of the case is Miller v. Michael J. Anderson, et al., No.: 5:20-cv-01743 (ND Ohio). A copy of the Derivative Complaint can be found by clicking here.