(Bloomberg) -- Activist investor Carl Icahn cut his position in FirstEnergy Corp., the Ohio utility owner that has been embroiled in a federal corruption scandal, and relinquished a board seat he controlled. 

The Icahn Group has trimmed its stock holdings in FirstEnergy below the 1.5% threshold that entitled the billionaire investor’s firm to hold board seats under an agreement between the companies, according to a filing. Andrew Teno, a portfolio manager at the investment firm, resigned from the board on Friday, according to the filing. Icahn Group declined to comment. 

FirstEnergy in an emailed statement thanked Teno for his contributions as a board member and said it has a “solid strategy” in place.

Icahn Enterprises LP held a 2.5% stake in the utility at the end of September, a roughly 14 million-share position valued at more than $500 million at current prices. The firm disclosed a nearly 19 million-share stake in the first quarter of 2021. 

Icahn had focused on helping Akron, Ohio-based FirstEnergy move past a corruption case involving a $1 billion state bailout for nuclear power plants. In June 2021, FirstEnergy paid a $230 million penalty and admitted to conspiring with public officials and others to pay millions of dollars in bribes. The utility then gave Icahn two board seats to avoid a potential proxy fight. 

Read more: FirstEnergy Gets Fourth CEO in 3 Years After Corruption Scandal

FirstEnergy shares have fallen about 11% this year and traded at $37.28 at 3:36 p.m. in New York. The stock fallen below $23 on an intraday basis in July 2020 amid the state bribery scandal and a push to repeal the subsidies for the nuclear power plant. 

 

--With assistance from Jennifer A. Dlouhy.

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