Hawaiian Electric welcomes top court's ruling on wildfire settlement

Hawaiian Electric Industries

11/02/2025 12:48

Feb 11 (Reuters) - Utility company Hawaiian Electric
 HE.N  on Tuesday welcomed the Hawaii Supreme Court's decision
towards finalizing the more than $4 billion settlement related
to the 2023 Maui wildfires saying it was favorable to the
company.
    The state's top court had ruled against insurance companies
a day earlier and decided that once the settlement becomes
final, insurers cannot separately sue parties blamed for the
wildfires.
    Shares of Hawaiian Electric rose 6.2% premarket on the
ruling. 
    "The decision helps move the settlement forward... while
providing more clarity for our company's path toward
reestablishing our financial stability," said Hawaiian Electric
CEO Scott Seu.
    In August, 2023, wildfires in Maui caused destruction in the
historic coastal town of Lahaina, killing over 100 people.
    The company had agreed to pay roughly half the settlement
last year to compensate victims of the deadly wildfires.
    The lawsuits brought on behalf of thousands of home and
business owners claimed that the company failed to shut off
power lines despite warnings that high winds might blow them
down and spark wildfires.
    "We see the court's order as a win for Hawaiian Electric,
but legislation providing visibility into how future wildfires
will be dealt with is needed before the stock can move
significantly higher," Jefferies analysts said.

 (Reporting by Pooja Menon in Bengaluru; Editing by Shailesh
Kuber)
 ((Pooja.Menon@thomsonreuters.com;))