A lawsuit has been filed against the CEO of a Florida electric utility company for allegedly selling millions of dollars worth of energy stocks to political consultants in Alabama who were part of a scheme to influence elections and spread false information. The lawsuit, filed by a former employee of the CEO, says he broke securities laws and betrayed his duties.
The lawsuit says that the CEO of Florida Power & Light (FPL), one of the biggest electric utilities in the country, sold more than $5.4 million worth of FPL’s stock between 2019 and 2020 to two political consulting companies in Alabama: Grow United Inc. and Matrix LLC. These companies were paid by FPL to work on secret projects and campaigns that aimed to protect FPL’s interests and profits from competitors and regulators.
The lawsuit says that the CEO knew or should have known that his deals with these companies were wrong, because they involved secret information about FPL’s business plans, strategies, and performance. The lawsuit also says that the CEO betrayed his duties to FPL’s shareholders, customers, employees, and creditors by selling FPL’s stock at high prices based on false or misleading information given by the consulting companies.
Read more:
- Voting Rights Decision May Curb Push to Diversify Georgia, Alabama Utility Commissions
- Alabama Inmate Labor System Challenged as Modern-Day Slavery
The lawsuit wants to get back the full amount of the money made by the CEO from his stock sales, plus damages for breaking the contract, cheating, being careless, and other reasons. The lawsuit also wants to stop the CEO from doing similar things in the future.
The lawsuit is part of a bigger investigation into Grow United Inc., which was exposed by a newspaper in Orlando last year. The newspaper reported that Grow United Inc. was behind a scheme that used hidden money to support fake candidates in three important state Senate elections in Florida in 2020. The scheme was meant to take votes away from Democratic candidates and help Republicans keep control of the state Senate.
The investigation also showed strong connections between Grow United Inc., Matrix LLC, and powerful business groups in Florida. Documents got by the newspaper showed that Matrix LLC charged FPL for more than $3 million days before they started moving money through Grow United Inc., which was controlled by some of Matrix’s founders. Documents also showed that FPL gave more than $10 million in recent years to other hidden-money nonprofits controlled by some of these same consultants.
FPL has said it had nothing to do with or did anything wrong in any political activities or schemes. In a statement last year, FPL spokesperson David P. Reuter said: “Neither FPL nor our employees gave money, or asked anyone else to give money on its behalf, to Grow United to support Florida state-level political campaigns during the 2020 election cycle.”
However, Reuter’s statement did not match some of the documents got by the newspaper last week, which showed how closely FPL executives worked with Matrix LLC on campaign donations made through their nonprofits. Reuter did not answer requests for comment on this article.
The lawsuit against FPL’s CEO is one of several legal problems facing him as more people look into his role in FPL’s operations and politics. In January 2023, he said he was retiring after more than 10 years leading the company. He is also facing a criminal investigation by prosecutors in Miami for possible tax evasion charges related to his stock sales.
FPL is one of America’s largest electric utilities with more than 5 million customers across Florida. It has been praised for its efforts to lower greenhouse gas emissions and increase renewable energy sources. However, it has also faced criticism for its high rates, customer service problems, environmental impacts, and political influence.
