Hawaiian Electric Industries agreed to a $47.75 million settlement with shareholders who alleged the company misled them about its wildfire safety measures before the 2023 fires in Hawaii.
The preliminary settlement, filed Monday in U.S. District Court in San Francisco, requires judicial approval.
Shareholders claimed the company gave false assurances about actions taken to prevent its utility poles from sparking fires, particularly in western Maui, where dry vegetation surrounded populated areas.
Hawaiian Electric denied any wrongdoing, according to court documents. The company said it allocated funds for the settlement in the third quarter of 2023 and expects coverage from insurance providers, according to a regulatory filing.
“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,” Hawaiian Electric spokesperson Darren Pai said 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.”
Wildfires fueled by high winds broke out in August 2023, primarily on Maui, destroying large parts of Lahaina and resulting in more than 100 deaths. In August 2024, Hawaiian Electric agreed to contribute $1.99 billion toward a roughly $4 billion settlement for fire-related claims. That settlement is pending court approval.
