FirstEnergy Committee Loses Bribery Derivative Stay Bid, Appeals

Sept. 17, 2021, 5:11 PM

FirstEnergy Corp.'s Special Litigation Committee is headed to the Sixth Circuit after a federal judge in Ohio refused to stay a shareholder derivative suit over the company’s alleged role in a state legislative bribery scandal.

The committee sought a six-month stay so it could evaluate the suit and decide whether the energy company should pursue the claims against FirstEnergy leadership on its own. But it waited about 11 months to pursue a stay, and the committee wasn’t even formed until after shareholders in a different federal court survived a motion to dismiss their parallel derivative suit, the U.S. District Court ...

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