FirstEnergy’s $180 Million Derivative Settlement Gets Appeal Nod

FirstEnergy Corp.‘s $180 million recovery from a shareholders derivative suit settlement—one of the largest such accords ever, plaintiffs said in their settlement proposal—has been upheld by a US appellate court.

The US Court of Appeals for the Sixth Circuit on Friday rejected shareholder Todd Augenbaum’s objections to the trial court’s approval of the accord, which came without an OK from the judge presiding over a concurrent suit involving alleged misrepresentations by FirstEnergy’s leadership.

Augenbaum had argued that the US District Court for the Northern District of Ohio needed to weigh in because it was the first venue where shareholders ...