Exelon Corporation

On July 15, 2019, Exelon announced that the Company and Commonwealth Edison (“ComEd”), which is owned by Exelon, had received a grand jury subpoena from the U.S. Attorney concerning Exelon’s lobbying activities in Illinois.

Then, on October 9, 2019, Exelon disclosed receipt of a second grand jury subpoena regarding its communications with Illinois State Senator Martin Sandoval.

On October 15, 2019, Exelon announced the abrupt exit of Anne Pramaggiore, Chief Executive Officer of Exelon Utilities. Analysts immediately identified the criminal subpoenas and Pramaggiore’s abrupt resignation as “being directly related to each other.”

On this news, Exelon’s share price fell $2.15, or nearly 5%, to close at $44.91 per share on October 16, 2019, thereby injuring investors.

Then, on October 31, 2019, the Company revealed that the U.S. Securities and Exchange Commission had also opened an investigation into the Company’s lobbying activities, but declined to state whether the investigations went beyond Illinois.

On this news, Exelon’s share price fell $1.17, or nearly 3%, to close at $45.49 per share on October 31, 2019, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Exelon and/or its employees were engaged in unlawful lobbying activities; (2) that the foregoing increased the risk of a criminal investigation into Exelon; (3) that ComEd's revenues were in part the product of unlawful conduct and thus unsustainable; and (4) that, as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.