(Reuters) – Utility company Hawaiian Electric on Tuesday welcomed the Hawaii Supreme Court’s decision towards finalizing the more than $4 billion settlement related to the 2023 Maui wildfires saying it was favorable to the company.
The state’s top court had ruled against insurance companies a day earlier and decided that once the settlement becomes final, insurers cannot separately sue parties blamed for the wildfires.
Shares of Hawaiian Electric rose 6.2% premarket on the ruling.
“The decision helps move the settlement forward… while providing more clarity for our company’s path toward reestablishing our financial stability,” said Hawaiian Electric CEO Scott Seu.
In August, 2023, wildfires in Maui caused destruction in the historic coastal town of Lahaina, killing over 100 people.
The company had agreed to pay roughly half the settlement last year to compensate victims of the deadly wildfires.
The lawsuits brought on behalf of thousands of home and business owners claimed that the company failed to shut off power lines despite warnings that high winds might blow them down and spark wildfires.
“We see the court’s order as a win for Hawaiian Electric, but legislation providing visibility into how future wildfires will be dealt with is needed before the stock can move significantly higher,” Jefferies analysts said.
(Reporting by Pooja Menon in Bengaluru; Editing by Shailesh Kuber)
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