Exelon faces a potential class-action lawsuit over its entanglement in a federal investigation of its lobbying practices.
A lawsuit filed this week by Joshua Flynn accuses the ComEd parent company of making false and misleading statements this year about the investigation, which repeatedly led to losses in its stock price.
Exelon disclosed in July it and ComEd had received a grand jury subpoena from the U.S. Attorney’s office in Chicago seeking information about its lobbying activities in Illinois. Then, in early October, it disclosed that the companies had received a second grand jury subpoena seeking information about “certain individuals,” including state Sen. Martin Sandoval.
On Oct. 15, it then issued a press release announcing the departure of Exelon Utilities CEO Anne Pramaggiore. That prompted Exelon’s stock price to fall 4.57% on Oct. 16, according to Flynn’s lawsuit.
On Oct. 31, Exelon disclosed an investigation by the U.S. Securities and Exchange Commission into its lobbying activities, prompting Exelon’s stock price to drop 2.51%, according to Flynn’s lawsuit.
The lawsuit complains that “Exelon left specific details concerning the lobbying investigation undisclosed,” and that its statement on Pramaggiore’s retirement “offered no reason for her departure, but analysts began to speculate that the criminal subpoenas and Pramaggiore’s abrupt resignation were related.”
Officials from Exelon declined comment Tuesday.