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Limits on fact-finding may hinder shareholder lawsuits


The ongoing utility corruption scandal in Ohio continues to unfold, with recent developments surrounding the state’s 2019 nuclear and coal bailout law, House Bill 6. Ohio Attorney General’s office is seeking to limit evidence from a state criminal case from going to plaintiffs in federal shareholder litigation, as well as to restrict former FirstEnergy executives Chuck Jones and Michael Dowling from questioning witnesses.

The Securities and Exchange Commission has settled claims against FirstEnergy for $100 million, while filing a separate case against former CEO Chuck Jones for securities law violations. Regulatory cases related to HB 6 have also seen recent updates, with Ohio regulators limiting evidence and an audit report finding minimal impact on customers.

FirstEnergy’s lobbying efforts for a federal bailout under the Trump administration have come to light, revealing extensive interactions between company executives and Trump officials. In the political sphere, Ohio congressional campaigns are addressing HB 6, with U.S. Rep. Marcy Kaptur targeting Republican challenger Derek Merrin for his involvement in the scandal.

Criminal cases continue, with former Ohio House Speaker Larry Householder still involved in legal battles despite being forced out from his position. Payments from Householder’s campaign committee to legal services have raised eyebrows, with ongoing investigations into his alleged involvement in the corruption scandal. The complexity of the case underscores the far-reaching implications of the utility corruption scandal in Ohio.

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