Shares of Hawaiian Electric Industries Inc. (HE) saw a significant increase after the company addressed a lawsuit filed by Maui County regarding the deadly Lahaina fires. Hawaiian Electric referred to the lawsuit as “factually and legally irresponsible.”
According to the company, an early morning fire on August 8 in Lahaina seemed to have been caused by power lines that fell due to strong winds. The Maui County Fire Department confirmed that they had extinguished the fire and left the scene by 2 p.m.
However, at around 3 p.m., a second fire erupted in the same location, despite Hawaiian Electric’s power lines being “de-energized” for more than six hours. The cause of this subsequent fire is still unknown.
Following these developments, Hawaiian Electric’s stock (HE) experienced a remarkable 31.6% surge in premarket trading.
In contrast, on Friday, the stock plummeted by 18.6% to $9.66, marking its lowest point since October 17, 1984, due to the company’s decision to suspend its dividend. Since August 8, the stock has dropped by an alarming 72.8%, while the S&P 500 index slipped by 2.1% during the same period.
Hawaiian Electric’s Chief Executive, Shelee Kimura, expressed disappointment at the County of Maui for immediately pursuing legal action without completing a thorough investigation. Kimura stated, “We believe the complaint is factually and legally irresponsible.” She added that the company may be compelled to demonstrate its innocence within the legal system due to the county’s lawsuit.
Furthermore, Hawaiian Electric emphasized that their records “conclusively establish” that their power lines in Lahaina were not energized when the afternoon fire broke out near Lahaina Intermediate School.
The company revealed that the crew working on repairs at the site of the morning fire reported a “small fire” about 75 yards away, which developed into the afternoon fire ultimately. Unfortunately, by the time the Maui County Fire Department returned to the scene, they were unable to contain the fire, leading to its uncontrollable spread towards Lahaina.
Hawaiian Electric released a statement addressing these events, stating, “By the time the Maui County Fire Department arrived back on the scene, it was not able to contain the afternoon fire and it spread out of control toward Lahaina.”
It is clear that Hawaiian Electric Industries Inc. seeks to challenge the assertions made against them in an effort to uphold their responsibility and ensure justice is served in regards to the Lahaina fires.
