FirstEnergy controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
Back to profile4 entries
2024
SEC internal-controls and investor-disclosure settlement
The SEC alleged that FirstEnergy misrepresented aspects of its role in the House Bill 6 scheme to investors and failed to maintain accurate books, records, and internal accounting controls concerning payments to third-party organizations. FirstEnergy agreed to pay $100 million and continued its compliance-reform program.
2024
Ohio state enforcement settlement
FirstEnergy reached a state-level Ohio settlement involving approximately $20 million and a no-prosecution agreement conditioned on cooperation and compliance. The agreement formed part of the broader response to the House Bill 6 scandal.
2020
Ohio House Bill 6 bribery scandal
Federal prosecutors alleged that FirstEnergy and related interests routed approximately $60 million through political organizations associated with former Ohio House Speaker Larry Householder to support his political power, advance House Bill 6, and defend the legislation from repeal. The law included customer-funded subsidies benefiting FirstEnergy-affiliated nuclear plants and changes to Ohio energy policy. FirstEnergy admitted its role in the scheme, dismissed involved executives, and entered a federal deferred-prosecution agreement.
2020
FirstEnergy shareholder files civil suit alleging executive misconduct
Lawsuit filed
A FirstEnergy shareholder, John Gendrich, filed a civil lawsuit naming FirstEnergy as a defendant. His lawyers alleged that company executives breached their duties to the company and its shareholders and engaged in criminal conduct. These are allegations made in the suit and not a court finding. The event was reported in July 2020.
Shareholder John Gendrich filed a civil lawsuit naming FirstEnergy as a defendant. His lawyers allege that company executives breached duties to the company and shareholders and engaged in criminal conduct; these are allegations in the suit, not a court finding.
Company response
Denial — FirstEnergy
“I believe that FirstEnergy acted properly in this matter and we intend to cooperate fully with the investigation to among other things, ensure our company and our role and supporting House Bill 6 is understood as accurately as possible.”
Source excerpt
The criminal investigation alleges that the five men used a dark money organization called Generation Now to accept $61 million in political donations from Akron-based FirstEnergy and its former subsidiaries.
In a civil lawsuit filed Saturday in Summit County Common Pleas Court, lawyers for shareholder John Gendrich allege that the 24 named defendants, and up to 10 more who are not named, “breached their fiduciary duties of loyalty, good faith, candor, and trust owed to FirstEnergy and all of its shareholders; and engaged in criminal conduct for which they are civilly liable.”