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Hawaiian Electric Industries (NYSE:HE) and six other defendants reached a $4 billion settlement to resolve lawsuits from hundreds of victims of last year’s Maui wildfires.
The proposed international settlement, which is subject to final documentation and court approval, The seven defendants will pay $4.037 billion to provide compensation for all claims related to the wildfires that erupted almost a year ago, the bank said. statement Hawaii Governor Josh Green made the announcement on Friday.
Hawaiian Electric (HE) will pay about $2 billion in the settlement, the company said in a separate statement on Friday.
The proposed settlement is an agreement in principle. The agreement is contingent on the resolution of claims for property losses and other damages already paid by the insurers and no additional payments from the defendants. The plaintiffs have 90 days to reach a profit-sharing agreement with the insurers or for the judge to determine that the insurers’ only remedy is to seek recovery from the settlement payments made to each plaintiff.
“This has been an extraordinary and unprecedented effort by so many people grappling with the devastating effects of wildfires less than a year ago,” Governor Green said in a statement. “Resolving this issue so quickly shows how unique Hawai’i is and how we come together in times of crisis to heal together as a community.”
If the settlement is approved, payments are expected to begin by mid-2025.
The settlement came after Bloomberg reported on July 18 that the parties were nearing a tentative settlement, sending Hawaiian Electric (HE) shares soaring 37% that day. The $4 billion total would be less than the estimated capital costs of the fires, estimated at about $5.5 billion in damage assessments released last year.
HEI is expected to provide further details about the settlement during its quarterly earnings report scheduled for next Friday.
