FirstEnergy Settles SEC Bribery Case for $100 Million

FirstEnergy, an Akron, Ohio-based electricity provider, has agreed to a $100 million settlement with the SEC to resolve charges stemming from a bribery scandal. The company was accused of paying $60 million in bribes to Ohio politicians in exchange for favorable legislation benefiting its nuclear plants. This scandal resulted in several politicians, former FirstEnergy executives, regulators, and lobbyists being charged or sentenced to prison, making it the largest bribery scheme in Ohio history.

FirstEnergy’s CEO, Brian X. Tierney, expressed satisfaction with reaching a resolution with the SEC, stating that the company is turning a new chapter. The settlement follows a series of legal troubles for the utility, including losing its naming rights for the NFL’s Cleveland Browns stadium due to public pressure over the scandal.

Despite the settlement and legal challenges, FirstEnergy’s shares have risen 20% this year, with the company setting aside $100 million in anticipation of the settlement in a previous quarterly report. The company’s stock price edged lower to $44.01 following the announcement of the settlement.

The bribery scandal has cast a shadow over FirstEnergy, leading to significant legal and reputational damage. While the company is working to move past this chapter, the consequences of the scandal have had lasting effects on both the company and those involved in the corruption scheme.

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