Hawaiian Electric Industries Inc. has agreed to a nearly $2 billion payment as part of a $4 billion settlement to resolve numerous lawsuits related to the catastrophic wildfires in Maui that resulted in 102 fatalities and the destruction of approximately 2,200 structures.
The company reached an “agreement in principle” to settle all tort claims arising from the disaster, according to a statement released on Friday. The settlement also includes contributions from the state of Hawaii, Maui County, and various telecommunications companies, addressing the claims of thousands of affected homeowners and businesses from what is considered one of the worst wildfire incidents in U.S. history.
Shelee Kimura, president and CEO of Hawaiian Electric, stated that this settlement would help all parties move past the complexities and disruptions of ongoing litigation.
The wildfires, which severely impacted the historic town of Lahaina, were exacerbated by Hawaiian Electric’s failure to shut off power despite warnings of extreme fire conditions due to hot, dry winds. This oversight has led to a significant decline in the company’s stock value and a downgrade of its credit ratings to junk status.
The fires began on August 8, 2023, with initial small blazes near Lahaina, which were extinguished by firefighters. However, a larger fire erupted later in the day, further fueled by downed power lines and snapped poles. This sequence of events was corroborated by a report from the Hawaii Attorney General’s office in April.
Maui County had filed a lawsuit against Hawaiian Electric for alleged negligence in preparing its equipment for the fire risk, while Hawaiian Electric countered by blaming the county.
