Reports of a Wildfire Settlement Deal Have Hawaiian Electric Stock Flying

Hawaiian Electric Industries (HE) and others have reached a tentative deal to pay more than $4 billion to settle lawsuits related to wildfires that ravaged Maui in 2023, according to a Bloomberg report.

The report, citing people familiar with the deal, sent shares of the utility flying, with Hawaiian Electric stock recently up nearly 40% to above $17 as investors cheered the possibility of a resolution. That has it in positive territory for the year, though they’re well off late-2022 prices around $40.

The company is facing hundreds of suits from individuals and businesses alleging the company’s decision not to de-energize its power lines contributed to the fires, which caused $5.5 billion in damages and killed more than 100.

Hawaiian Electric, which serves 95% of the state’s residents, is joined in the settlement deal by cable provider Charter Communications (CHTR) along with state and local governments. Charter’s shares were little changed Friday morning.

If the deal stands, Hawaiian Electric will pay at least $1.5 billion, according to the Bloomberg report. How the funds will be allocated isn’t clear, but insurance companies are seeking nearly $2 billion in reimbursement for claims paid out to those affected by the fires. Plaintiffs’ attorneys have offered more than $600 million, the report said.