Credit: RomanR/Adobe Stock
Hawaiian Electric Industries agreed to a $47.75 million settlement with shareholders who claim the utility misled them about its safety protocols ahead of wildfires in Maui in 2023.
Several investors sued the utility alleging it made false claims about its wildlife prevention efforts ahead of the blaze.
Hawaiian Electric denied any wrongdoing in the settlement.
A report from the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives found the August 2023 fire was sparked, at least in part, by the re-energization of downed power lines, which created sparks that ignited overgrown vegetation. The fire killed more than 102 people and destroyed 2,200 structures, many of which were in the historic resort town of Lahaina.
The preliminary settlement was filed Jan. 5 and requires a judge’s approval.
According to a regulatory filing, Hawaiian Electric said it expects insurers to provide the funding for the settlement.
“The settlements of HEI shareholder derivative litigation and the securities class action litigation are separate from the previously announced global settlement for personal injury, property damage and related claims,” said Darren Pai, Hawaiian Electric spokesperson, in a statement. “Funding for the settlements related to the shareholder derivative litigation and securities class action litigation is coming from insurance, not customers of Hawaiian Electric.”
In a different settlement in 2024, Hawaiian Electric agreed to contribute $1.99 billion toward an approximately $4 billion settlement to compensate fire victims.
Photo credit: RomanR/Adobe Stock
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