FirstEnergy Agrees to $100 Million SEC Settlement

FirstEnergy Corp. has agreed to a $100 million settlement with the U.S. Securities and Exchange Commission (SEC) regarding its involvement in a political corruption scheme tied to Ohio's House Bill 6. This settlement is part of the broader fallout from a bribery scandal where FirstEnergy admitted to making payments totaling approximately $60 million to support favorable legislation, which included a $1 billion bailout for two nuclear plants. The SEC's investigation revealed that FirstEnergy misled investors about these bribes, resulting in the civil penalty which the company had already reserved for in its Q2 2024 financials. This settlement follows a previous $230 million fine imposed by federal prosecutors in 2021 related to the same scandal. Additionally, the SEC has sued the former CEO of FirstEnergy for his role in the scheme, which has led to criminal charges against multiple individuals. FirstEnergy's CEO emphasized the company's commitment to improving its operations and customer experience post-settlement.