In re Hawaiian Electric Industries, Inc. Stockholder Derivative Litigation

A shareholder derivative action filed against officers and directors of Hawaiian Electric Industries, Inc. (HEI), the largest electricity supplier in Hawai‘i, charged that the defendants knew for years before the 2023 Maui wildfires that the areas served by HEI were at risk of severe weather risk and that equipment and safety protocols and procedures were inadequate and that the defendants “failed to implement policies and practices meant to meaningfully mitigate these material risks.” The complaint alleged that the defendants also misled the public regarding HEI’s readiness for severe weather events, with false and misleading statements regarding risk mitigations, adherence to ESG principles, safety protocols and procedures, and equipment maintenance. The complaint included excerpts of statements regarding the company’s consideration of climate-related risks. The complaint alleged that if the defendants “took material risks to the Company seriously,” lives and property lost and damaged during the 2023 Maui wildfires could have been saved. The complaint alleged that HEI’s reputation was “extremely damaged” and that it faces liability for “billions of dollars in damages” resulting from fires, as well as other costs. The complaint asserted counts of breach of fiduciary duty, waste of corporate assets, and unjust enrichment.