Hawaiian Electric Soars on Report of Maui Fire Settlement Plan

By Mark Chediak

July 10, 2024 at 11:03AM EDT

LAHAINA, HAWAII - OCTOBER 09: A woman uses a shovel as she searches for family items in the rubble of her mother's wildfire destroyed home on October 09, 2023 in Lahaina, Hawaii. Volunteers from Samaritan's Purse helped displaced residents and family members search for meaningful personal belongings at several destroyed homes in the area. The wind-whipped wildfire on August 8th killed at least 98 people while displacing thousands more and destroying over 2,000 buildings in the historic town, most of which were homes. A phased reopening of tourist resort areas in west Maui began October 8th on the two-month anniversary of the deadliest wildfire in modern U.S. history. (Photo by Mario Tama/Getty Images) (Mario Tama/Photographer: Mario Tama/Getty I)

(Bloomberg) -- Hawaiian Electric Industries Inc. rose the most in 10 months after a local news outlet reported that a settlement resolving all claims and lawsuits over the Maui wildfires was advancing through the Maui County Council.

Hawaiian Electric jumped as much as 24% in early trading on Wednesday. Shares were up 17.7% to $10.09 at 11:00 a.m. in New York.

A council committee held a hearing Tuesday to consider the settlement and didn’t reveal an amount to resolve claims against the county and other co-defendants, according to the report by KHON2 news in Honolulu. Wind-driven wildfires destroyed the historic town of Lahaina on August 8, 2023, killing 102 people and causing an estimated $6 billion in economic damages.

Hawaiian Electric faces dozens of lawsuits by fire victims’ families accusing it of negligence because the utility didn’t turn off power lines despite forecasts of wildfire risk. Maui County also sued the utility, claiming it failed to properly prepare equipment for the threat of wildfires. Hawaiian Electric alleged in a counter-suit that the county was to blame.