Exelon Corporation (EXC) Receives Two Grand Jury Subpoenas
According to the complaint for alleged violations of the Securities Exchange Act of 1934 between February 9, 2019 and November 1, 2019, in February 2019, Exelon Corporation (EXC) announced its 2018 financial results. Regarding lobbying, the report stated “no Exelon personnel may engage in lobbying activities on behalf of the Company…without first obtaining the approval of Government or Regulatory Affairs or the Legal Department.” On July 15, 2019, Exelon disclosed that it 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 lobbying activities.” Then, on October 9, 2019, the Company revealed that both Exelon and ComEd had received a second grand jury subpoena. Following the second subpoena, Exelon announced the abrupt departure of its CEO. On October 31, 2019, Exelon revealed that the U.S. Securities and Exchange Commission had opened an investigation into the same lobbying activities. Finally, on November 1, 2019, the Chicago Tribune reported that that the ComEd lobbying investigations had begun at least in mid-May when the FBI executed search warrants at the homes of various political figures for records of communications regarding ComEd lobbying work. Since these disclosures, Exelon’s stock price has fallen almost 9% and has yet to recover.