Cobb EMC will pay approximately $98 million to current and former members of their electrical cooperative. This settlement was reached after three years of heated and scandalous negotiations. The EMC was sued by its user/members for profits that were supposed to be returned to the cooperative’s members but were not.
As you may know, EMC owns EMC Security, a relatively new startup in the home security systems marketplace.
Investigations discovered that tens of millions of dollars were also allegedly directed to a for-profit corporation which benefited former CEO Dwight Brown and other EMC officials. Millions of dollars more went to attorneys paid to defend Brown against criminal charges. The lawsuit claimed that Cobb EMC failed to abide by the terms of its charter. That charter requires the electrical cooperation to repay customers from its excess profits. EMC power electrical cooperatives are considered to be quasi-monopolies in the areas that they operate in. Customers have little option except to pay their stated prices. It appears that a substantial amount of profits went into the pockets of EMC officials.
The former CEO Dwight Brown is currently under indictment in Cobb County on the charge of racketeering, theft, and even witness intimidation.
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