HEI Provides Update Following Global Settlement in Maui Wildfire Tort Litigation
02 Agosto 2024 - 9:00PM
Business Wire
Hawaiian Electric Industries, Inc. (NYSE: HE) (“HEI”), today
announced that HEI and its subsidiary, Hawaiian Electric Company,
Inc. (“Hawaiian Electric”), and other parties have reached an
agreement in principle to settle all tort claims related to the
August 2023 wildfires on Maui.
HEI and Hawaiian Electric, the State of Hawaiʻi, the County of
Maui, Kamehameha Schools, West Maui Land Co., Hawaiian Telcom and
Spectrum/Charter Communications have agreed on the terms of a
proposed settlement with the lead attorneys for individual and
class plaintiffs. Under the proposed terms, which remain subject to
final documentation and court approval and do not include any
admission of liability, the defendants would collectively pay over
$4 billion to resolve all tort claims arising from the Aug. 8, 2023
wildfires on Maui. The settlement also would resolve all claims
among the defendants. HEI and Hawaiian Electric’s contribution is a
total of $1.99 billion (pre-tax) and includes the $75 million
previously contributed for the One ʻOhana Initiative, to be paid in
four installments.
Scott Seu, President and CEO of HEI, stated, “One of our core
values in Hawaiʻi is the concept of laulima, which means many hands
working together. Our Board and management are pleased to have
reached this agreement in principle on an expedited basis, which
embodies the spirit of this concept as we come together on a path
forward. Not only is this good for our community, but we are
confident that this settlement represents the best outcome for HEI,
as it provides a clear line of sight toward resolution of the
wildfire-related tort litigation and increased certainty for our
company’s path ahead. In the coming months, we will be focused on
finalizing the agreement and regaining the strength of our
enterprise.”
Settlement Details
The settlement terms were reached after four months of mediation
between the defendants and attorneys representing plaintiffs from
Lahaina and Upcountry Maui. At this point, the proposed settlement
is an agreement in principle between the defendants and attorneys
representing individual and class plaintiffs. The agreement is
conditioned on a resolution of the claims of the insurance
companies that have paid claims for property loss and other
damages, with no additional payments from defendants. Under the
terms of the agreement, the individual plaintiffs and insurers have
90 days to reach an agreement on the allocation of the settlement
amount between those groups, or have a judge decide that the
insurersʻ exclusive remedy is to seek to recover from the
settlement payments made to each of the plaintiffs, among other
terms. Once a final settlement agreement is signed, it will take
effect following judicial review and approval. The payments would
begin after such approval and are expected to be made no earlier
than mid-2025.
Financing Update
With the agreement in principle now in place, HEI is moving
forward with clarity on the scope of its liabilities related to the
Maui wildfire tort litigation. HEI and Hawaiian Electric are
working closely with their financial advisors to develop a
financing plan for their settlement contribution and intend to
finance the settlement payments through a mix of debt, common
equity, equity-linked securities, or other potential options,
although there can be no assurance at this time as to the
availability or terms of any such financing.
HEI will further discuss the settlement in its quarterly
earnings call scheduled for Friday, August 9.
ABOUT HEI
The HEI family of companies provides the energy and financial
services that empower much of the economic and community activity
of Hawai'i. HEI’s electric utility, Hawaiian Electric, supplies
power to approximately 95% of Hawai'i’s population and is
undertaking an ambitious effort to decarbonize its operations and
the broader state economy. Its banking subsidiary, American Savings
Bank, is one of Hawai'i’s largest financial institutions, providing
a wide array of banking and other financial services and working to
advance economic growth, affordability and financial wellness. HEI
also helps advance Hawai'i’s sustainability goals through
investments by its non-regulated subsidiary, Pacific Current. For
more information, visit www.hei.com.
Forward-Looking Statements
This statement may contain “forward-looking statements,” which
include statements that are predictive in nature, depend upon or
refer to future events or conditions, and usually include words
such as “will,” “expects,” “anticipates,” “intends,” “plans,”
“believes,” “predicts,” “estimates” or similar expressions. In
addition, any statements concerning future financial performance,
ongoing business strategies or prospects or possible future actions
are also forward-looking statements. Forward-looking statements are
based on current expectations and projections about future events
and are subject to risks, uncertainties and the accuracy of
assumptions concerning HEI, Hawaiian Electric and their
subsidiaries, the performance of the industries in which they do
business and economic, political and market factors, among other
things. These forward-looking statements are not guarantees of
future performance.
Forward-looking statements in this statement should be read in
conjunction with the “Cautionary Note Regarding Forward-Looking
Statements” and “Risk Factors” discussions (which are incorporated
by reference herein) set forth in HEI’s Annual Report on Form 10-K
for the year ended December 31, 2023 and HEI’s other periodic
reports that discuss important factors that could cause HEI’s
results to differ materially from those anticipated in such
statements. These forward-looking statements speak only as of the
date of the report, presentation or filing in which they are made.
Except to the extent required by the federal securities laws, HEI,
Hawaiian Electric and their subsidiaries undertake no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20240802834122/en/
Investor Contact Mateo Garcia Director, Investor
Relations ir@hei.com (808) 543-7300
Media Contact Julie Smolinski VP, Strategy &
Corporate Sustainability media@hei.com (808) 543-5874
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