Firstenergy earnings affected by HB 6 probe

Firstenergy Corp. has revised its second-quarter earnings report to acknowledge the potential for financial losses related to the federal bribery and racketeering investigation brought against former Ohio House Speaker Larry Householder and several associates.

The Akron utility also said that the state may be considering filing charges, as well, as part of the investigation.

Firstenergy filed the quarterly statement Monday with the Securities and Exchange Commission, with the document saying the ongoing federal investigation into the $61 million scandal concerning House Bill 6 could have an adverse impact on the company.

Firstenergy said it is conducting its own internal investigation into the matter.

The company filed its report early Monday morning before the stock market opened. Shares were down 17 cents, or 0.6%, to $29.16 in early Monday afternoon.

The quarterly report, called 10-Q, says in part:

• On July 21, in connection with the investigation, Firstenergy received subpoenas for records from the U.S. Attorney’s Office.

• Firstenergy “was not aware of the criminal allegations, affidavit or subpoenas” before July 21 and that the company “is cooperating fully in the investigation.”

• Certain Firstenergy shareholders and customers have filed lawsuits against the company and certain current and former directors, officers and other employees, “each relating to the allegations” against Householder and other individuals and entities allegedly affiliated with the former House speaker.

• Ohio Attorney General Dave Yost “may be considering legal action and, in a letter dated July 24, 2020, notified (Firstenergy) of its duty to not destroy documents in its custody or control regarding Ohio House Bill 6.”