$49M FirstEnergy settlement over bribery scheme approved

Update:

• A federal judge gave final approval to a $49 million class action settlement made by FirstEnergy to resolve claims it used $60 million in bribes to get lawmakers in Ohio to pass legislation that bailed out the electric company.
• U.S. District Judge Edmund A. Sargus Jr. approved the settlement in an opinion filed Dec. 5 in an Ohio federal court.
• Plaintiffs Jacob Smith, Michael Emmons and Brian Hudock filed lawsuits against Horizon arguing that the company gave bribes to pass a law that created surcharges on electric bills to subsidize two nuclear power plants it owned in violation of the Racketeer Influenced Corrupt Organizations Act. 
• The settlement would benefit about 2 million ratepayers who would get an average of $16 each, the judge writes.

(Oct. 12, 2022)

Final approval is being sought for a $49 million class action settlement made by FirstEnergy to resolve claims it used $60 million in bribes to get lawmakers in Ohio to pass legislation that bailed out the electric company.

The legislation—called H.B. 6.—went into effect back in 2019 and created surcharges on electric bills in order to subsidize two nuclear power plants owned by Horizon, reports Law360. 

Plaintiffs Jacob Smith, Michael Emmons, and Brian Hudock filed lawsuits against Horizon in response, arguing that Horizon had given bribes to have the law passed, in violation of the Racketeer Influenced Corrupt Organizations Act. 

Larry Householder, the former speaker of the Ohio House of Representatives lost his position and was indicted on criminal charges in 2020 over his connection with the alleged bribery scheme, reports Law360.

Two lawmakers have pled guilty to alleged role in FirstEnergy bribery scheme

An additional four lobbyists were also reportedly criminally charged, while two of the five men arrested overall in July 2020 have since pled guilty to their alleged roles in the FirstEnergy bribery scheme. 

The federal judge overseeing the complaint granted preliminary approval to the settlement agreement around three months ago, reports Law360. 

Eligible class members include citizens of Ohio who “paid costs or will pay costs associated with or affected by implementation of HB 6,” with Smith, Emmons, and Hudock reportedly estimating that there could be millions of class members.

Smith, Emmons, and Hudock say the settlement agreement has received only four total objections and 44 opt-out requests, which they say indicates that the agreement is an “excellent result,” reports Law360. 

Have you been financially affected by Ohio’s AB6 law? Let us know in the comments! 

The plaintiffs are represented by Dennis E. Murray Jr., Margaret M. Murray and William H. Bartle of Murray & Murray, Marvin A. Miller and Andrew Szot of Miller Law LLC, and James L. Ward Jr. of McGowan Hood and Felder LLC.

The FirstEnergy corruption class action lawsuits are Smith v. FirstEnergy Corp., et al., Case No. 2:20-cv-03755, Hudock, et al. v. FirstEnergy Corp., et al., Case No. 2:20-cv-03954, and Buldas v. FirstEnergy Corp., et al., Case No. 2:20-cv-03987, in the U.S. District Court for the Southern District of Ohio.

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