The securities class action against Hawaiian Electric Industries resolves claims alleging corporate leadership misled the public and investors about wildfire safeguards ahead of the Lahaina disaster. While the utility maintains it committed no wrongdoing, the agreement avoids a final ruling on the merits. Tens of thousands of investor claims were evaluated by an administrator to divide the recovery fund among verified losses. U.S. District Judge Jacqueline Scott Corley also placed strict limits on administrative expenses and denied an incentive award sought for the lead plaintiff.
Key points
Hawaiian Electric resolved the securities class action regarding its wildfire preparednes…: Hawaiian Electric resolved the securities class action regarding its wildfire preparedness without admitting liability or facing a final ruling on the merits.
Counsel received a reduced fee percentage because the court identified issues with billin…: Counsel received a reduced fee percentage because the court identified issues with billing records, duplicative efforts, and an unjustified departure from regional benchmarks.
Net proceeds will be distributed proportionally to approved investors according to recogn…: Net proceeds will be distributed proportionally to approved investors according to recognized losses once final court procedures conclude.
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A US federal judge has approved a $47.75 million settlement in a securities lawsuit against Hawaiian Electric Industries, while significantly reducing the legal fees requested by the investors’ lawyers. The October 23 ruling by the US District Court for the Northern District of California, reported by Bloomberg Law and Law360, brings the investor class action closer to resolution nearly three years after the devastating Maui wildfires. According to the court’s order in Bhangal v. Hawaiian Electric Industries, Inc., Judge Jacqueline Scott Corley approved the settlement but awarded attorneys $9.55 million, substantially below the amount sought. The decision follows scrutiny of the legal teams’ billing records and the hours claimed for their work on the case.
Why investors sued Hawaiian Electric
The lawsuit centred on allegations that Hawaiian Electric Industries and senior company officials misled investors about the utility’s preparedness for wildfire risks. The claims concerned securities purchased or acquired between February 28, 2019, and September 4, 2023, covering the period leading up to the August 2023 wildfires that devastated Lahaina, Maui.
The complaint alleged that investors were given an inaccurate…
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