FirstEnergy Agrees to $100 Million Bribery Settlement with SEC Amid Ohio Scandal

FirstEnergy has agreed to a $100 million settlement with the U.S. Securities and Exchange Commission (SEC) to resolve charges related to a bribery scandal. The Akron, Ohio-based utility was accused of paying approximately $60 million in bribes to state politicians in exchange for favorable legislation benefiting its nuclear plants.

The scandal, which is considered the largest bribery scheme in Ohio’s history, has led to charges or prison sentences for numerous politicians, former FirstEnergy executives, regulators, and lobbyists involved.

FirstEnergy’s CEO, Brian X. Tierney, expressed relief at reaching the settlement, noting that the company had anticipated this outcome and set aside $100 million in preparation. The settlement is part of FirstEnergy’s efforts to move past the scandal and restore its reputation.

In addition to the settlement, the scandal had wider repercussions for the company. In April 2023, FirstEnergy lost its naming rights to the stadium of the NFL’s Cleveland Browns due to public backlash. The stadium reverted to its original name before being renamed under a new deal with Huntington Bank earlier this month.

Following the news, FirstEnergy’s stock dropped slightly to $44.01 but has seen a 20% increase this year.