NextEra Energy, Inc. (NEE) Failed to Disclose that FPL’s Surreptitious Orchestration of Political Misconduct Exposed it to Substantial Legal and Reputational Risk
A shareholder filed a class action on behalf of persons or entities that purchased or otherwise acquired NextEra, Energy, Inc. (NYSE: NEE) securities between December 2, 2021 and February 1, 2023. NextEra is one of the largest power and utility holding companies in North America. NextEra’s primary subsidiary is Florida Power and Light Co. (“FPL”), the largest vertically integrated regulated utility in Florida.
According to the complaint, beginning in December 2021, media outlets began reporting that FPL and its political consulting firm, Matrix LLC, had orchestrated a range of improper political expenditures including potential violations of state and federal campaign finance laws. Specifically, reports alleged that FPL’s political consultants had used a network of nonprofits to surreptitiously steer funding to spoiler “ghost candidates” intended to derail the campaign efforts of unfriendly legislators seeking reelection to the Florida state legislature during the 2020 election cycle. Later reports alleged that FPL had spied on journalists after the publication of unsupportive reporting, and improperly courted public officials with job offers while bidding to privatize certain public utilities.
The truth was finally revealed on January 25, 2023, when FPL President and CEO Eric Silagy abruptly resigned and NextEra acknowledged in a Form 8-K filed with the SEC that FPL faced legal and reputational risks because of the allegations that FPL executives had orchestrated political misconduct. On this news, NEE’s stock dropped $7.31 per share, or about 8.7%, representing a loss of approximately $15 billion in market capitalization.
What Now: Similarly situated shareholders may be eligible to participate in the class action against NextEra Energy, Inc. Shareholders who want to act as lead plaintiff for the class must file their papers by July 25, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
