CLEVELAND (AP) Ohio’s largest electric utility, its reputation battered by scandal, has been besieged by more than a dozen lawsuits filed by angry shareho
December 30, 2020
CLEVELAND (AP) Ohio’s largest electric utility, its reputation battered by scandal, has been besieged by more than a dozen lawsuits filed by angry shareholders who include some of the country’s biggest institutional investors.
And, if history is a guide, FirstEnergy Corp. and its insurers could find themselves paying millions to settle those complaints, as the company did more than 15 years ago when confronted by lawsuits for lying about a dangerous hole in a reactor head at a nuclear power plant and for contributing to the largest blackout in U.S. history.
FirstEnergy and insurers for its corporate officers and board of directors paid out more than $100 million to settle lawsuits in 2004. It is far too early to estimate what settlements of the new lawsuits might total, but the potential payouts could far exceed those from 2004, given the losses shareholders claim to have suffered
Scandal-battered utility now faces specter of pricey lawsuits telegraphherald.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from telegraphherald.com Daily Mail and Mail on Sunday newspapers.
Mark Gillispie December 30, 2020 - 5:20 AM
CLEVELAND - Ohioâs largest electric utility, its reputation battered by scandal, has been besieged by more than a dozen lawsuits filed by angry shareholders who include some of the countryâs biggest institutional investors.
And, if history is a guide, FirstEnergy Corp. and its insurers could find themselves paying millions to settle those complaints, as the company did more than 15 years ago when confronted by lawsuits for lying about a dangerous hole in a reactor head at a nuclear power plant and for contributing to the largest blackout in U.S. history.
FirstEnergy and insurers for its corporate officers and board of directors paid out more than $100 million to settle lawsuits in 2004. It is far too early to estimate what settlements of the new lawsuits might total, but the potential payouts could far exceed those from 2004, given the losses shareholders claim to have suffered.