Edison Sued for Alleged Misleading Statements Before California Wildfires
The parent company of Southern California Edison faces a class action lawsuit alleging it defrauded shareholders by assuring them of its ability to shut down power lines before the recent Los Angeles-area wildfires.
The suit, filed on Tuesday, claims Edison International made false and misleading statements for nearly four years prior to the Eaton fire, which broke out in January 2023. The fire devastated over 14,000 acres, destroyed thousands of structures, and claimed 17 lives.
The plaintiffs allege that Edison failed to de-energize power lines in the area, despite its previous assurances that it used a program to do so. Lawsuits have also alleged that the company's equipment may have sparked the fire.
Edison's share price has plummeted 34% since the disaster. The lawsuit seeks unspecified damages for shareholders from 2021 to 2025.
Named as defendants are Edison International, CEO Pedro Pizarro, and CFO Maria Rigatti. The case is filed in the U.S. District Court for the Central District of California.