Exelon Corporation ($EXC) $46.2M Fair Fund Settlement

Late claims are being considered for compensation, subject to approval.

$46,200,000

Cash Settlement

SEC

Court

3-21761

Case number

12/01/2016

Class period Start

10/30/2019

Class period End

07/06/2025

Claim deadline

Exelon Corporation ($EXC) has agreed to pay $46.2 million through an SEC Fair Fund to compensate investors, resolving claims that it and its subsidiary, Commonwealth Edison, engaged in a multi-year corruption scheme to improperly influence legislation in Illinois.

Outline:

In 2023, ComEd, a subsidiary of Exelon was accused of providing benefits to associates of a state official in connection with legislation that supported its business between 2011 and 2019. These activities raised concerns about internal oversight and transparency. Exelon later agreed to a $46.2 million SEC Fair Fund.

Timeline:
Between 2011 and 2019: ComEd operated a scheme to influence Illinois legislation by bribing associates of Speaker Michael Madigan.
On September 28, 2023: The SEC issued a cease-and-desist order, outlining the violations and establishing a $46.2 million penalty and Fair Fund.
On December 4, 2024: The SEC posted a proposed distribution plan, inviting public comments.
On February 4, 2025: The SEC approved the Final Plan of Distribution.
In February, 2026: Investors can file late claims in Exelon Fair Fund
Background

Exelon Corporation ($EXC) entered the market as a dominant utility powerhouse, promising stable growth and a robust legislative advantage in Illinois. They promoted its ability to navigate complex regulatory environments through its subsidiary, Commonwealth Edison Company.

At the time, the companies leveraged their massive infrastructure and market position to assure that their business model was uniquely insulated from political volatility. They highlighted a track record of legislative successes as evidence of a sustainable and transparent competitive edge.

In their public disclosures, the company admitted to general risks regarding the uncertainty of future legislation and the standard regulatory hurdles inherent in the utility sector. But, it framed these as routine operational challenges that were being managed through ethical and lawful government relations.

However, Exelon and ComEd failed to disclose that their legislative "wins" were actually fueled by a multi-year bribery scheme. According to the Securities and Exchange Commission, the companies corruptly influenced the then-Speaker of the Illinois House, Michael Madigan, by arranging jobs and monetary payments for his associates.

The SEC investigation revealed the scheme spanned nearly a decade, leading the SEC to charge the firms with violating antifraud and internal controls provisions.

The fallout was devastating for shareholder value as the truth behind the corrupted legislation came to light, puncturing the stock's artificial inflation.

What Can Investors Expect Now?

Exelon Corporation ($EXC) has agreed to pay $46.2 million through an SEC Fair Fund to compensate investors, resolving claims that it and its subsidiary, Commonwealth Edison, engaged in a multi-year corruption scheme to improperly influence legislation in Illinois.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.

Case Type

SEC Fair Fund

Case Status

Accepting Late Claims

Alleged Offence

Misleading Statements,

Failure to Disclose

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Trades matching type

FIFO

Frequently Asked Questions

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