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Exelon Corporation


The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of Illinois on behalf of those who acquired Exelon Corporation (“Exelon” or the “Company”) (NASDAQ: EXC) securities during the period from February 9, 2019 through November 1, 2019 (the “Class Period”). Investors have until February 14, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.

The lawsuit alleges that the Company failed to disclose that: (i) Exelon and/or its employees were engaged in unlawful lobbying activities; (ii) the foregoing increased the risk of a criminal investigation into Exelon; and (iii) ComEd’s revenues were in part the product of unlawful conduct and thus unsustainable.
 
Exelon owns various “Utility Registrants” that are regulated by State utility commissions, including, among other entities, Commonwealth Edison (“ComEd”). On July 15, 2019, the Company disclosed that both Exelon and ComEd had “received a grand jury subpoena from the U.S. Attorney’s Office for the Northern District of Illinois requiring production of information concerning their lobbying activities in the State of Illinois.” Then, on October 9, 2019, the Company reported that both Exelon and ComEd had received a second subpoena from the U.S. Attorney’s Office.

On October 15, 2019, Exelon issued a press announced the abrupt departure or the Chief Executive Officer (“CEO”) of Exelon Utilities, and former President/CEO of ComEd. The Company’s statement on Pramaggiore’s retirement offered no reason for her departure, but analysts following the Company came to the conclusion that the criminal subpoenas and Pramaggiore’s abrupt resignation were related. On this news, Exelon’s stock price fell $2.15 per share, or 4.6%, to close at $44.91 on October 16, 2019.

Then, on October 31, 2019, Exelon disclosed that “[o]n October 22, 2019, the SEC notified Exelon and ComEd that it has also opened an investigation into their lobbying activities.” On this news, Exelon’s stock price fell $1.17 per share, or 2.5%, to close at $45.49 on October 31, 2019.

Finally, on November 1, 2019, the Chicago Tribune reported that “[t]he ComEd lobbying investigation dates to at least mid-May, when the FBI executed search warrants at the homes of former lobbyist Mike McClain of Quincy, a longtime confidant of House Speaker Michael Madigan, and of former 23rd Ward Ald. Michael Zalewski.” Additionally, “[t]he information sought by the FBI included records of communications among Madigan, McClain and Zalewski about attempts to obtain ComEd lobbying work for Zalewski.” On this news, Exelon’s stock price fell an additional $0.15 per share to close at $45.34 per share on November 1, 2019.

If you acquired Exelon securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you. 
 

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