HONOLULU–(BUSINESS WIRE)–Hawaiian Electric Industries, Inc. (NYSE: HE) (HEI) today announced that HEI, its subsidiary Hawaiian Electric Company, Inc. (Hawaiian Electric) and other parties have entered into an agreement in principle to resolve all tort claims related to the August 2023 Maui wildfires.
HEI and Hawaiian Electric, the State of Hawaii, the County of Maui, Kamehameha Schools, West Maui Land Company, Hawaii Telecom and Spectrum/Charter Communications have reached agreements with individual and class lead counsel on the terms of the proposed settlement. Under the proposed terms, which are still subject to final filings and court approval and do not include any admission of liability, the defendants would pay a total of more than $4 billion to resolve all tort claims arising from the Maui wildfires on August 8, 2023. The settlement agreement will also resolve all claims between the defendants. HEI and Hawaiian Electric’s total contribution, pre-tax, is $1.99 billion, which includes a previous $75 million contribution to the One Ê»Ohana program and will be paid in four installments.
“One of Hawaii’s core values is cooperate, which means many people working together. Our Board and management are pleased to have reached this agreement quickly and in principle, which embodies the spirit of our philosophy of working together on our path forward. Not only is this good for our community, we believe this settlement represents the best outcome for HEI because it provides a clear vision for resolving wildfire-related tort litigation and adds certainty to our company’s path forward. Over the next few months, we will focus on completing the agreement and restoring the strength of our business.
Settlement details
After four months of mediation, the defendants reached settlement terms with attorneys representing plaintiffs from Lahaina and mainland Maui. Currently, the proposed settlement is an agreement in principle between the defendants and attorneys representing individual and class plaintiffs. The agreement was conditional on the insurance company having paid property damage and other damages, with no additional payments from the defendants. Under the terms of the agreement, the individual plaintiffs and the insurers have 90 days to come to an agreement on how the settlement amount will be divided among the groups or have a judge decide that the insurer’s only remedy is to seek to recover from the settlement payments, among other provisions. This demand was made to each plaintiff. Once signed, the final settlement agreement will become effective subject to judicial review and approval. Payments will begin upon approval and are expected to be made no earlier than mid-2025.
Financing update
With the agreement in principle now in place, HEI is clarifying the scope of its liability related to Maui wildfire tort litigation. HEI and Hawaiian Electric are working closely with their financial advisors to develop financing plans for their settlement contributions and intend to fund the settlement payments through a combination of debt, common equity, equity-linked securities or other potential options, although there may be no guarantees at this time. The availability or terms of any such financing.
HEI will further discuss the settlement during its quarterly earnings call scheduled for Friday, August 9.
About black love
The HEI family of companies provides energy and financial services that support much of Hawaii’s economic and community activity. HEI’s electric utility, Hawaiian Electric, provides electricity to approximately 95% of Hawaii’s population and is undertaking ambitious efforts to decarbonize its operations and the broader state economy. Its banking subsidiary, American Savings Bank, is one of Hawaii’s largest financial institutions, providing a wide range of banking and other financial services and working to promote economic growth, affordability and financial health. HEI also invests through its unregulated subsidiary, Pacific Current, to help advance Hawaii’s sustainability goals. For more information, please visit www.hei.com.
forward-looking statements
This statement may contain forward-looking statements, including statements that are predictive in nature, rely on or relate to future events or conditions, which generally include expressions such as intentions, expectations, expectations, intends, plans, believe, forecasts, estimates or similar expressions. In addition, any statements regarding future financial performance, ongoing business strategies or prospects, or actions that may be taken in the future are also forward-looking statements. Forward-looking statements are based on current expectations and projections of future events and are subject to risks, uncertainties and the accuracy of assumptions regarding HEI, Hawaiian Electric and its subsidiaries, the performance of the industries in which it operates, and economic, political and economic matters. Influence. These forward-looking statements are not guarantees of future performance.
The forward-looking statements in this statement should be read in conjunction with the cautionary note regarding the discussion of forward-looking statements and risk factors set forth in HEI’s Annual Report on Form 10-K for the year ended December 31, which is incorporated herein by reference. and HEI’s other periodic reports 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 this report, presentation or filing. Except to the extent required by the federal securities laws, HEI, Hawaiian Electric and its 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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Investor Contact
Mateo Garcia
Director of Investor Relations
ir@hei.com
(808)543-7300
Media Contact
Julie Smolinski
Vice President of Strategy and Corporate Sustainability
media@hei.com
(808)543-5874
Source: Hawaiian Electric Industries, Inc. (NYSE: )
