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Columbus, OH - An Ohio federal judge on Friday denied FirstEnergy Corp.'s objections to not having a chance to further support its bid to shield internal investigative documents from a class of investors and two of its indicted former executives. U.S. District Judge Algenon L. Marbley stated that the objections are moot as they have already been overruled.

According to a two-page order, FirstEnergy had filed a motion on April 30 seeking to submit supplemental authorities to support its objections to a special master's order mandating the company produce documents and testimony related to two internal investigations. These investigations followed a $1 billion bribery scandal involving the company.

FirstEnergy argued that the documents in question contained privileged legal advice provided during the government investigations and subsequent private litigation resulting from the scandal. The company also requested a stay on the order to turn over the documents until the Sixth Circuit could review the case.

However, the special master denied FirstEnergy's motion to file supplemental authorities earlier this month, and the court subsequently overruled the company's objections to the special master's order.

"FirstEnergy now objects to an order denying them leave to file supplemental authority in support of objections that have already been overruled," the order stated. "Because this court ruled on the internal investigation objections, the objections are moot and overruled."

The internal investigations were initiated after the arrest of former Ohio House Speaker Larry Householder, who was charged and later convicted of accepting bribes from FirstEnergy in exchange for supporting a $1 billion bailout of two of the company's nuclear plants.

FirstEnergy claimed that the work performed by attorneys from Jones Day and Squire Patton Boggs LLP during those investigations was privileged, as the firms were providing legal advice in response to government probes and private litigation stemming from the bribery scandal.

Judge Marbley, in his order overruling FirstEnergy's objections, stated that the company had not demonstrated that the investigations were primarily motivated by legal reasons rather than business reasons, such as deciding whether to fire executives.

FirstEnergy aimed to shield the documents from a class of investors and from ex-CEO Chuck Jones and former Senior Vice President of External Affairs Michael Dowling, who had also moved to compel their production. Both men have been indicted for their alleged roles in the bribery scheme, and FirstEnergy argued they intended to use the materials to aid their defenses.

The underlying class action, filed in 2020, claims that investors suffered significant losses when the scandal emerged. Investors accused the Ohio-based utility company of misleadingly covering up its handling of the financial issues surrounding its nuclear power plants.

Judge Marbley certified the class last year, though that decision is currently on appeal before the Sixth Circuit.

Representatives for the parties did not immediately respond to requests for comment.

The investors are represented by Darren Robbins and Mark Solomon of Robbins Geller Rudman & Dowd LLP and Joseph Murray of Murray Murphy Moul + Basil LLP.

Jones is represented by Carole Rendon, Daniel Warren, Douglas Shively, Jeremy Steven Dunnaback, Rachael Israel, Albert Lin, and George Stamboulidis of BakerHostetler, and William Scherman and Jennifer Mansh of Vinson & Elkins LLP.

Dowling is represented by John McCaffrey, John Favret, and Hannah Smith of Tucker Ellis LLP, and Dan Webb, Steven Grimes, and A. Matthew Durkin of Winston & Strawn LLP.

FirstEnergy is represented by Robert Giuffra, Sharon Nelles, David Rein, Beth Newton, Nicholas Menillo, Hilary Williams, Tasha Thompson, and Kamil Shields of Sullivan & Cromwell LLP, and Paul Schumacher and Richard Silk of Dickie McCamey & Chilcote PC.

The case is In re: FirstEnergy Corp. Securities Litigation, case number 2:20-cv-03785, in the U.S. District Court for the Southern District of Ohio.