Key Takeaways
- FirstEnergy said it has agreed to a $100 million settlement with the SEC to resolve charges from a bribery scandal.
- The Akron, Ohio-based utility was accused of paying some $60 million in bribes to state politicians for favorable legislation for FirstEnergy’s nuclear plants.
- Several politicians, former FirstEnergy executives, regulators, and lobbyists have been charged or sentenced to prison for their roles in the largest bribery scheme in Ohio history.
Ohio-based electricity provider FirstEnergy (FE) said that it has reached a $100 millin settlement into the Securities and Exchange Commission’s (SEC) investigation into the company’s bribery scandal.
“We are pleased to have reached a resolution with the SEC as we continue to turn a new chapter,” FirstEnergy Chief Executive Officer (CEO) Brian X. Tierney said. The company said in a previous quarterly report that it had set aside $100 million in anticipation of the settlement.
Settlement Follows Ohio’s Largest Corruption Scandal
The Akron-based utility was accused of paying some $60 million in bribes to Ohio politicians for favorable bailout legislation for its nuclear plants.
Several politicians, former FirstEnergy executives, regulators, and lobbyists have been charged or sentenced to prison for their roles in the largest bribery scheme in Ohio history.
The scandal also had other implications for FirstEnergy, which in April 2023 lost its naming rights deal for the stadium housing the NFL’s Cleveland Browns amid public pressure over the scandal. The venue reverted to its original moniker, Cleveland Browns Stadium, last season before being renamed following a deal with Huntington Bank (HBAN) earlier this month.
FirstEnergy shares edged lower to $44.01 about 45 minutes after markets opened Friday but have risen 20% this year.