July 29, 2004

FirstEnergy Settles

FirstEnergy Corp. (NYSE - FE), a public utility holding company headquartered in Akron, Ohio, has announced the preliminary settlement of the securities class action (and related state and federal derivative suits) pending against the company in the N.D. of Ohio. The suits "alleged violations of federal securities laws and related state laws in connection with events related to FirstEnergy, including the extended outage at the Davis-Besse Nuclear Power Station; the August 14, 2003, regional power outage; and financial restatements related to changed accounting treatments for transition assets being recovered in Ohio."

The settlement is for $89.9 million and is subject to court approval. FirstEnergy's insurance carriers will pay $71.92 million "based on a contractual pre-allocation."

Posted by Lyle Roberts at July 29, 2004 11:34 PM | TrackBack
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