NEW YORK--(BUSINESS WIRE)--Zamansky LLC announces its investigation of Edison International Inc. (NYSE: EIX)(“Edison”) and the Edison 401(k) Savings Plan (the “Plan”) for possible violations of the federal Employee Retirement Securities Act of 1974 (“ERISA”). ERISA imposes fiduciary duties to prudently manage and invest the assets of the Plan. These duties were potentially violated by Edison’s continued offering of its company stock while it allegedly knew that the stock price was artificially inflated.
On July 6, 2015, a securities fraud complaint was filed against Edison and two officers in U.S. District Court, Southern District of California, 15-CV-1478. The complaint alleges that Edison’s stock price was artificially inflated from July 31, 2014, through June 24, 2015, from material non-disclosure about problems with its $3.3 billion “SONGS” settlement between Edison’s subsidiary, Southern California Edison, and the California Public Utility Commission (“CPUC”). The “SONGS” settlement relates to SCE’s allegedly over-billing of utility customers for the costs of closing its San Onofre Nuclear Generating Station in 2012.
The complaint alleges that Edison and its two officers knew that SONGS settlement was suspect and potentially void due to extensive illegal ex parte negotiations with the CPUC. Edison’s settlement of the SONGS issue had removed uncertainty about the company’s stock price and led to its growth. The revelations that the SONGS settlement was not fully approved and may possibly be overturned because of the ex parte negotiations resulted in large declines in the stock price. Edison’s stock price is trading down at least 20% this year.
According to employee stock fraud attorney, Jake Zamansky, Edison’s existing and former employees who purchased and held company stock through the 401(k) Savings Plan since at least May 2013, may have suffered damage and losses to their retirement savings. The allegations of Edison’s possible securities fraud raise serious issues for Edison employees whose retirement plans held company stock, including questions about the prudent monitoring and oversight by the Plan’s fiduciaries under ERISA, he states.
What Existing and Former Edison Employees Can Do
If you are an existing or former Edison employee who purchased or held company stock through the Edison 401(k) Savings Plan, please contact our firm for an evaluation of your rights. You can contact Jake Zamansky by telephone at (212) 742-1414 or by email at firstname.lastname@example.org.
About Zamansky LLC
Zamansky LLC is a leading stock law firm specializing in securities fraud, ERISA and employment class actions. We are investment fraud attorneys who represent both individual and institutional investors. Our practice is nationally recognized for our ability to aggressively prosecute cases and recover investment losses.
To learn more about Zamansky LLC, please visit our website, http://www.zamansky.com.