RICHMOND, Va. — As a proposed merger between NextEra Energy and Dominion Energy, which would create the largest regulated utility in the world, is scrutinized by regulators and the public, some critics have pointed to NextEra's political past in Florida as a cause for concern.
Local News
Catch up: Where the proposed $67B Dominion-NextEra merger stands 3 months later
CBS 6 reviewed federal court records in a civil case in Southern Florida, which detail allegations of political misconduct. The case remains open as a proposed settlement has not been accepted by a judge.
Here's a breakdown of the case.
In 2023, NextEra investors filed a class-action lawsuit claiming the company's subsidiary Florida Power and Light (FPL) made misleading statements about its involvement in alleged "political scandals."
According to the complaint, the action "concerns political scandals that FPL allegedly engaged in by secretly using corporate funds to influence state and local elections, target elected officials who opposed certain FPL initiatives, and intimidate journalists who scrutinized FPL’s actions."
The lawsuit cited media reports in 2021 that alleged a range of improper activities during the 2018 and 2020 election cycles in Florida.
Those allegations, as described in the complaint, included:
- FPL's political consulting firm allegedly using non-profits to steer funding to "ghost candidates" intended to derail campaign efforts of certain politicians
- FPL allegedly taking control of a supposed independent news website and directing it to publish attacks on candidates and reporters who had previously investigated the company
- The political consulting firm allegedly spying on journalists with active participation from FPL employees
The shareholders' complaint said FPL responded to reports of any potential scandal by denying involvement, which the lawsuit alleged was false.
It wasn't until 2023 that the complaint alleged NextEra formally informed investors of potential adverse effects of the allegations reported by media outlets. A stock drop followed.
The lawsuit claimed people who invested in the period between when the allegations first surfaced in reports and the 2023 disclosure suffered losses.
NextEra and FPL denied the allegations in the complaint and argued the plaintiffs failed to meet the legal standard required to prove securities fraud.
In court filings, the companies said NextEra commissioned two separate outside investigations into the allegations and that both concluded without findings of unlawful conduct.
Further, the defendants argued they had previously disclosed potential risks to investors months before the 2023 disclosure that plaintiffs alleged caused a stock drop.
A federal district court judge initially dismissed the lawsuit, finding the investors did not adequately allege a connection between the alleged fraud and loss of money. An appeals court later disagreed with the lower court and reversed that decision.
In March of this year, court filings show the parties agreed to a $150 million settlement of the case, which the plaintiffs said was the largest of its kind in more than 30 years in Southern Florida.
Earlier this month, however, a judge denied the proposed settlement, saying it did not give the court enough information to determine the fairness of the settlement terms. The judge is allowing the parties to refile.
Some Virginia politicians and advocates have said the allegations in this case add to their questions about NextEra's effort to acquire Dominion.
“Virginia is already sort of the Wild, Wild West as it comes to politics, so it doesn’t seem to me that that would be an added bonus to our political landscape here to have them come play here," Sen. Russet Perry (D-Loudoun) said.
CBS 6 reached out to NextEra and Dominion multiple times over several days to request comment on the case.
Neither company has responded.
CBS 6 is committed to sharing community voices on this important topic. Email your thoughts to the CBS 6 Newsroom.
📲: CONNECT WITH US
Blue Sky | Facebook | Instagram | X | Threads | TikTok | YouTube
