Hawaiian Electric stock plunges 40% after lawsuit alleges it failed to shut power off ahead of the Maui wildfires

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Hawaiian Electric’s stock tumbled Monday morning after a class action lawsuit filed over the weekend alleged that Maui’s devastating wildfires were caused by the utility’s energized power lines that were knocked down by strong winds

The utility says it provides power to 95% of the state’s residents. The suit alleges that Hawaiian Electric Industries “chose not to deenergize their power lines during the High Wind Watch and Red Flag Warning conditions for Maui before the Lahaina Fire started,” despite knowing the risks of sparking a fire in those conditions.

Preliminary numbers from research firm CoreLogic put the residential property damages at $1.3 billion, but Hawaii Gov. Josh Green estimates the losses “approach $6 billion.” Hawaii’s attorney’s general office has launched a formal review of the state’s emergency response and the decisions leading up to the deadly blazes that engulfed the island last week. Some officials and residents have started pointing fingers at the utility company for failing to implement critical safety measures.

 

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