{"id":23147,"date":"2025-02-12T15:13:34","date_gmt":"2025-02-12T15:13:34","guid":{"rendered":"https:\/\/www.insurancejournal.com\/?p=811739"},"modified":"2025-02-12T15:13:34","modified_gmt":"2025-02-12T15:13:34","slug":"edison-utility-faces-shareholder-lawsuit-over-la-wildfires","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2025\/02\/12\/edison-utility-faces-shareholder-lawsuit-over-la-wildfires\/","title":{"rendered":"Edison Utility Faces Shareholder Lawsuit Over LA Wildfires"},"content":{"rendered":"<div><img decoding=\"async\" src=\"https:\/\/www.insurancejournal.com\/img\/social\/opengraph\/ij-social-lawsuits-1200x630.png\" class=\"ff-og-image-inserted\"><\/div>\n<ul class=\"nav nav-tabs tabs tabs-entry\">\n<li class=\"active\"><a href=\"https:\/\/www.insurancejournal.com\/news\/west\/2025\/02\/12\/811739.htm\">Article<\/a><\/li>\n<li><a href=\"https:\/\/www.insurancejournal.com\/news\/west\/2025\/02\/12\/811739.htm?comments\" rel=\"nofollow\">0 Comments<\/a><\/li>\n<\/ul>\n<div class=\"article-content clearfix\">\n<p class=\"reuters\">The parent company of Southern California Edison has been sued for allegedly defrauding shareholders before the recent Los Angeles-area wildfires by assuring them it could shut down power lines to reduce the risk of catastrophic damage.<\/p>\n<p>Tuesday\u2019s proposed class action against Edison International appeared to be the first shareholder lawsuit stemming from the Eaton Fire, which broke out on January 7 east of Los Angeles in Altadena, California during a Santa Ana windstorm.<\/p>\n<div class=\"bzn bzn-sized bzn-intext\">\n<ins data-revive-zoneid=\"79\" data-revive-topics=\"catastrophe,lawsuits,natural-disasters,wildfire\" data-revive-companies data-revive-block=\"1\" data-revive-id=\"36eb7c2bd3daa932a43cc2a8ffbed3a9\"><\/ins> <\/div>\n<p><strong>Related: <a href=\"https:\/\/www.insurancejournal.com\/news\/west\/2025\/02\/07\/811127.htm\">Edison Probing Retired Power Line as Possible Start of LA Eaton Fire<\/a><\/strong><\/p>\n<p>The fire burned more than 14,000 acres, destroyed more than 9,400 structures and killed 17 people.<\/p>\n<p>Edison had no immediate comment, saying it will review the complaint.<\/p>\n<p>Shareholders led by Felipe Antillon said Edison made materially false and misleading statements over nearly four years before the fire, in assuring that its utility unit used a power shutoff program to \u201cproactively de-energize power lines\u201d to reduce wildfire risks during \u201cextreme weather events.\u201d<\/p>\n<p><strong>Related: <a href=\"https:\/\/www.claimsjournal.com\/news\/national\/2025\/01\/28\/328644.htm\">Edison Shares New Details on Transmission Lines in Eaton Amid Wildfire Probe<\/a><\/strong><\/p>\n<p>The shareholders said the truth began to emerge amid reports that Edison had not de-energized nearby power lines, while lawsuits blamed the company\u2019s electrical equipment for starting the Eaton fire, which has since been contained.<\/p>\n<div class=\"bzn bzn-sized bzn-intext-2\">\n<ins data-revive-zoneid=\"162\" data-revive-topics=\"catastrophe,lawsuits,natural-disasters,wildfire\" data-revive-companies data-revive-block=\"1\" data-revive-id=\"36eb7c2bd3daa932a43cc2a8ffbed3a9\"><\/ins> <\/div>\n<p>Edison\u2019s share price has fallen 34% since the fire broke out.<\/p>\n<p>The lawsuit seeks unspecified damages for shareholders from February 25, 2021 through February 6, 2025.<\/p>\n<p>On the latter date, Edison said it received information suggesting a possible link between its equipment and the Eaton fire, and that it believed its equipment may be associated with the ignition of the Hurst fire, which burned 799 acres.<\/p>\n<p>Other defendants include Edison\u2019s Chief Executive Pedro Pizarro and Chief Financial Officer Maria Rigatti. Edison is based in Rosemead, California.<\/p>\n<p>Shareholders often sue companies for alleged misleading disclosures or omissions after unexpected events cause stock prices to fall.<\/p>\n<p>The several Los Angeles-area wildfires last month may prove the most expensive natural disaster in U.S. history.<\/p>\n<p>The case is Antillon v Edison International Inc, U.S. District Court, Central District of California, No. 25-01154.<\/p>\n<p><em>(Reporting by Jonathan Stempel in New York; Editing by Cynthia Osterman)<\/em><\/p>\n<p class=\"tagtag\"> <span class=\"tagtag\">Topics<\/span> <a href=\"https:\/\/www.insurancejournal.com\/lawsuits\/\" class=\"btn btn-sm btn-primary tagtag\">Lawsuits<\/a> <a href=\"https:\/\/www.insurancejournal.com\/catastrophe\/\" class=\"btn btn-sm btn-primary tagtag\">Catastrophe<\/a> <a href=\"https:\/\/www.insurancejournal.com\/natural-disasters\/\" class=\"btn btn-sm btn-primary tagtag\">Natural Disasters<\/a> <a href=\"https:\/\/www.insurancejournal.com\/wildfire\/\" class=\"btn btn-sm btn-primary tagtag\">Wildfire<\/a> <a href=\"https:\/\/www.insurancejournal.com\/location\/louisiana\/\" class=\"btn btn-sm btn-primary tagtag\">Louisiana<\/a> <\/p>\n<\/p><\/div>\n<div class=\"article-poll\" data-post=\"811739\">\n<div class=\"article-poll-vote\">\n<p>Was this article valuable?<\/p>\n<\/p><\/div>\n<div class=\"article-poll-feedback voted-no\">\n<form class=\"feedback-form\">\n<p>Thank you! 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