US Judge Approves $47.75m Hawaiian Electric Settlement Over Wildfire Disclosures

A federal judge has approved a $47.75 million settlement in a securities class action lawsuit against Hawaiian Electric Industries, resolving claims that the utility company made misleading disclosures regarding its wildfire preparedness measures.

The court substantially reduced the legal fees sought by the investors' attorneys, limiting compensation to the plaintiffs' counsel to 20 percent of the total settlement. This decision marks a notable departure from the initially requested fee structure and reflects judicial scrutiny of attorney compensation in securities litigation.

The settlement process revealed a significant disparity between submitted and approved claims. Of more than 67,000 claims filed by investors, the court validated only approximately 24,000, resulting in a rejection rate exceeding 64 percent. The approved claimants will receive distributions based on a loss-calculation methodology that accounts for individual investor losses.

The settlement resolution concludes litigation that centered on allegations that Hawaiian Electric Industries failed to adequately disclose risks related to wildfire management and prevention strategies. The court's approval enables the distribution process to commence for eligible claimants in the coming months.