FPL Securities Case Appealed

Article reposted with permission from The News Service of Florida.

Investors have appealed a federal judge’s dismissal of a securities-fraud lawsuit alleging Florida Power & Light and its parent company made misleading statements about involvement in funding "ghost" candidates to influence elections. Attorneys for plaintiffs in the potential class-action lawsuit went to the 11th U.S. Circuit Court of Appeals last week after U.S. District Judge Aileen Cannon issued an order dismissing the case on Sept. 27. The lawsuit was filed in June 2023 after a series of events stemming from media reports about allegations that FPL had funneled money through a political-consulting firm, Matrix LLC, and other organizations to improperly influence elections. Probably the most high-profile example involved allegations that FPL helped back a “ghost” candidate — someone on the ballot but not an active candidate — who siphoned votes from then-state Sen. Jose Javier Rodriguez, D-Miami, in the 2020 election. Rodriguez ultimately lost by 32 votes to now-Sen. Ileana Garcia, R-Miami, with the third candidate, Alex Rodriguez, receiving 6,382 votes. In part, the plaintiffs contended that the stock price of NextEra Energy, FPL’s parent, dropped in January 2023 after making disclosures that followed denials of wrongdoing. But Cannon rejected the arguments, saying the plaintiffs “have failed to identify a corrective disclosure that reveals a truth that was previously concealed or obscured by defendants’ alleged fraud.” As is common, the notice of appeal filed last week did not detail arguments the plaintiffs’ attorneys will make at the Atlanta-based appeals court.