Investor Class Action Filed Against Hawaiian Electric (HE) for Securities Fraud Violations

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2023Sep 6

A class action lawsuit has been filed on behalf of those who purchased or acquired Hawaiian Electric Industries, Inc. (“Hawaiian Electric”) (NYSE: HE) securities between February 28, 2019 and August 16, 2023, both dates inclusive (the “Class Period”). Case Background: The Class Period begins on February 28, 2019 when Hawaiian Electric filed its Annual Report which stated, among other things, that the company had “appropriately responded to environmental conditions.” In early August 2023, a series of severe wildfires broke out in Hawaii, predominantly on the island of Maui. The most destructive fire began in West Maui near the town of Lahaina on the morning of August 8, 2023. By that afternoon, intense winds had knocked down approximately 30 utility poles throughout Maui, resulting in at least 15 separate outages impacting more than 12,400 customers. Moreover, videos captured by local residents showed that downed power lines belonging to Hawaiian Electric appeared to have ignited at least several of the fires. Ultimately, the wind-driven fires prompted evacuations, caused widespread damage, and have killed at least 114 people, with some 850 others still missing in Lahaina. On August 12, 2023, news outlets began reporting that Hawaiian Electric lacked the proper policies and procedures to mitigate the impact of the wildfires. Specifically, it was revealed that, at the time the wildfires began, the Company did not maintain a public power shutoff plan—i.e., a plan in which electricity is intentionally cut off to areas where strong wind events could cause the fires to spread. On this news, Hawaiian Electric’s stock price fell $10.94 per share, or 33.76%, to close at $21.46 per share on August 14, 2023. Finally, on August 17, 2023, The Wall Street Journal reported that Hawaiian Electric had for years been aware of the threat posed by wildfire but waited years to act. Specifically, the report stated that between 2019 and 2022, Hawaiian Electric spent less than $245,000 on wildfire-specific projects on Maui and did not seek state approval to raise utility rates to pay for broad wildfire safety improvements until 2022. Following this news, Hawaiian Electric's stock price fell $2.54 per share, or 17.43%, to close at $12.03 per share on August 17, 2023. The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the company's business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Hawaiian Electric's wildfire prevention and safety protocols and procedures were inadequate to meet the challenges for which they were ostensibly designed; (2) accordingly, despite knowing the degree of risk that wildfires posed to Maui, the company's inadequate safety protocols and procedures placed Maui at a heightened risk of devastating wildfires; and (3) as a result, Defendant's public statements were materially false and misleading at all relevant times. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jonathan Naji, Esq. (484) 270-1453 or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.