Robbins Geller defeated motions to dismiss on April 21, 2021, after the court largely denied defendants’ claims in a securities class action brought against Exelon Corp., its subsidiary Commonwealth Edison Company, and senior executives of each company.
Exelon is a utility services holding company that engages in energy generation and delivery, and owns various utility registrants that are regulated by state utility commissions, including ComEd.
The case alleges that during the class period of February 8, 2019 through October 31, 2019, the companies and certain of their officers violated SEC rules and the Securities Exchange Act of 1934 by making materially false and misleading statements that concealed a bribery scheme that was conducted to secure passage of favorable legislation. As a result of the false and misleading statements, Exelon securities were alleged to have traded at artificially inflated prices. The bribery scheme was uncovered and ComEd entered into a Deferred Prosecution Agreement with the United States Attorney for the Northern District of Illinois. The disclosures relating to the concealed bribery scheme and its financial impact caused Exelon’s stock price to drop and investors to suffer hundreds of millions of dollars in investment losses.
The Robbins Geller team included James E. Barz (Picture), Brian E. Cochran, Frank A. Richter, and Gina M. Buschatzke.
Involved fees earner: James Barz – Robbins Geller Rudman & Dowd; Gina Buschatzke – Robbins Geller Rudman & Dowd; Brian Cochran – Robbins Geller Rudman & Dowd; Frank Richter – Robbins Geller Rudman & Dowd;
Law Firms: Robbins Geller Rudman & Dowd;