FirstEnergy Board Must Face Investor Suit Over Bribery Scheme

FirstEnergy Corp.’s directors and officers must face a shareholder derivative suit stemming from their alleged involvement in a bribery, racketeering, and pay-to-play scheme with Ohio politicians, after a federal court in that state found enough support Tuesday for allegations of false or misleading statements or omissions.

The allegations that the leadership misrepresented or failed to disclose FirstEnergy’s participation in the bribery scandal are sufficient to show they acted negligently, the Southern District of Ohio said. The shareholders also adequately pleaded that misleading proxy statements were an “essential link” in causing harm to FirstEnergy, the court said.

FirstEnergy Board Must Face Investor Suit Over Bribery Scheme (1)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s