Hawaiian Electric Industries, Inc.

On August 12, 2023, news outlets began reporting that Hawaiian Electric lacked the proper policies and procedures to mitigate the impact of the wildfires that had broken out in Maui a few days prior. Specifically, the Company did not deploy a “public power shutoff plan,” which involves intentionally cutting off electricity to areas where big wind events could spark fires.

On this news, Hawaiian electric’s stock price fell $10.94, or 33.8%, to close at $21.46 per shar eon August 14, 2023, thereby injuring investors.

Then, on August 17, 2023, the Wall Street Journal reported that Hawaiian Electric had been aware of the threat posed by wildfires without making appropriate changes, and that, between 2019 and 2022 the Company 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.

On this news, Hawaiian Electric’s stock price fell $2.45, or 17.4%, to close at $12.03 per share on August 17, 2023, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors 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, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.