FirstEnergy Shareholder Challenges $180 Million Derivative Deal

A FirstEnergy Corp. shareholder is appealing a court’s decision to approve a $180 million settlement in derivative litigation against the utility company’s directors, while highlighting concerns about forum shopping.

Judge Algenon Marbley of the US District Court for the Southern District of Ohio in August 2022 approved the settlement, which attorneys involved called one of the largest derivative recoveries ever in the US.

Todd Augenbaum, a shareholder who objected to the deal, argues a judge in the nearby Northern District of Ohio should’ve had the chance to pass judgment on the settlement. The northern Ohio judge, John Adams, also oversaw ...