Hawaiian Electric wildfire settlement overview:
- Who: Hawaiian Electric Industries Inc. and several current and former executives received final approval of a $100 million shareholder derivative settlement.
- Why: Shareholders alleged company leaders failed to prepare for wildfire risks before the deadly August 2023 Maui wildfire.
- Where: The Hawaiian Electric wildfire settlement was approved in Hawaii federal court.
A Hawaii federal judge granted final approval to a $100 million shareholder derivative settlement resolving claims that Hawaiian Electric Industries executives and directors failed to adequately prepare for wildfire risks before the deadly Maui wildfire that devastated Lahaina in August 2023.
Judge Micah W.J. Smith approved the settlement on May 28, calling it the largest cash recovery from a shareholder derivative settlement in Hawaii history. The court found the settlement was preferable to the risks and uncertainties associated with continued litigation.
The litigation stemmed from consolidated shareholder derivative lawsuits filed against Hawaiian Electric and several current and former officers and directors. Shareholders alleged company leaders were aware of wildfire risks facing Maui but failed to take appropriate action and allegedly misled regulators and the public about the utility’s preparedness.
According to the court’s order, Hawaiian Electric was aware by Aug. 8, 2023, that powerful winds would create fire conditions and that shutting off power could mitigate the risk. Plaintiffs alleged the company did not de-energize power lines, and a wildfire later swept through Lahaina, killing more than 100 people.
The shareholder lawsuits sought to hold company leadership accountable for alleged failures in wildfire planning, infrastructure management and risk mitigation.
The court noted that shareholder derivative cases face unique legal hurdles because Hawaii law generally requires shareholders to make a demand on the company’s board and show that the demand was wrongfully refused.
Judge Smith also said the settlement was strengthened by the lack of objections following preliminary approval.
Settlement funds to support company and related wildfire obligations
Under the shareholder derivative settlement, the defendants’ insurers will pay $100 million to Hawaiian Electric for the company’s benefit.
The court’s order states that $1 million will be released to help fund the anticipated first installment of a proposed securities litigation settlement, while the remainder will be available to Hawaiian Electric for “its exclusive benefit,” as reported by Law360.
The Hawaiian Electric wildfire settlement also resolves claims against numerous current and former executives and directors.
The court approved $25 million in attorneys’ fees, $168,624.99 in litigation expenses and $5,000 service awards for each named plaintiff.
The settlement comes as Hawaiian Electric continues to address legal and financial consequences stemming from the Maui wildfire. The company has already agreed to participate in a reported $4 billion global settlement related to wildfire claims.
In 2025, Hawaiian Electric agreed to pay $135 million to settle class action claims that it contributed to the August 2023 Maui wildfires that devastated the communities of Lahaina, Kula and Olinda.
What do you think about this Hawaiian Electric wildfire settlement? Let us know in the comments.
The plaintiffs are represented by Carl M. Varady of the Law Office of Carl M. Varady; Brian J. Robbins, Gregory E. Del Gaizo, Ashley R. Rifkin and Jacob W. Ogbozo of Robbins LLP; and Travis E. Downs III, Randall J. Baron and Benny C. Goodman III of Robbins Geller Rudman & Dowd LLP.
The Hawaiian Electric shareholder derivative lawsuit is In re: Hawaiian Electric Industries Inc. Stockholder Derivative Litigation, Case No. 1:24-cv-00164, in the U.S. District Court for the District of Hawaii.
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