The parent company of Southern California Edison is being sued for allegedly misleading shareholders before the recent wildfires in the Los Angeles area. The lawsuit claims Edison assured investors it could shut down power lines to prevent catastrophic damage, but failed to take the necessary actions.
Filed on Tuesday, the proposed class action against Edison International (EIX) marks the first shareholder lawsuit related to the Eaton fire, which ignited on January 7 in Altadena, California, during a Santa Ana windstorm. The fire devastated over 14,000 acres, destroyed more than 9,400 structures, and claimed 17 lives.
Edison has yet to comment on the lawsuit, stating it will review the complaint. The plaintiffs, led by shareholder Felipe Antillon, argue that Edison made false and misleading statements for nearly four years, assuring that its utility division was actively de-energizing power lines to reduce wildfire risks during extreme weather.
The truth began to surface as reports revealed Edison had not de-energized nearby power lines, while lawsuits accused the company’s equipment of sparking the Eaton fire, which has since been contained.
Edison’s stock has dropped by 34% since the fire. The lawsuit seeks unspecified damages for shareholders from February 25, 2021, to February 6, 2025. On February 6, Edison reported receiving information that linked its equipment to the Eaton fire and potentially to the Hurst fire, which burned 799 acres.
Other defendants in the lawsuit include Edison’s CEO, Pedro Pizarro, and CFO, Maria Rigatti. Edison is headquartered in Rosemead, California.
Shareholder lawsuits often follow unexpected events that cause stock prices to drop, especially when companies are accused of misleading investors. Last month’s wildfires in the Los Angeles area could be among the costliest natural disasters in U.S. history.
The case is Antillon v Edison International Inc, U.S. District Court, Central District of California, No. 25-01154.
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