American Electric Power Company, Inc. Class Action Lawsuit
- Company Name
- American Electric Power Company, Inc.
- Stock Symbol
- Class Period
- November 2, 2016 to July 24, 2020
- Southern District of Ohio
The American Electric Power Company, Inc. class action lawsuit charges American Electric Power and certain of its officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of American Electric Power securities between November 2, 2016 and July 24, 2020, inclusive (the “Class Period”). The American Electric Power class action lawsuit was commenced on August 20, 2020 in the Southern District of Ohio and is captioned Nickerson v. American Electric Power Company, Inc., No. 20-cv-04243.
American Electric Power is an electric public utility holding company that engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States.
The American Electric Power class action lawsuit alleges that during the Class Period, defendants made false and/or misleading statements and/or failed to disclose that, among other things: (i) American Electric Power covertly participated in the “the largest public corruption case in Ohio history”; (2) American Electric Power secretly funneled substantial funds to Ohio political organizations and politicians to bribe politicians to pass Ohio House Bill 6 (“HB6”), which benefitted the Company and its coal-fired generation assets; and (3) American Electric Power partially funded a massive, misleading advertising campaign in support of HB6 and in opposition to a ballot initiative to repeal HB6 by passing substantial sums through a web of dark money entities and front companies in order to conceal American Electric Power’s involvement.
On July 25, 2020, the Columbus Dispatch published an article, entitled “Columbus utility giant [American Electric Power] funded dark money spending in HB 6 campaign,” which reported that “[a]n affidavit filed by an FBI agent in the racketeering case details spending of $350,000 by an unidentified ‘interest group that was funded exclusively by $13 million from another energy company that supported HB 6.’ A source close to the investigation confirmed to The Dispatch that the energy company is American Electric Power . . . .” On this news, American Electric Power’s stock price fell more than 5%, damaging investors.
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