Edison International’s parent company, Southern California Edison (SCE), saw its stock plummet 12% on Monday following an investigation into a potential link between its equipment and the Los Angeles wildfires. The utility stated that one of its power lines fell in January but does not know if the damage occurred before or after the fire.
The Hurst fire has burned over 800 acres, while the overall wildfires have scorched more than 40,000 acres. A mass action lawsuit was filed on behalf of Altadena resident Jeremy Gursey and others, alleging that SCE’s failure to de-energize its overhead wires contributed to the Eaton fire. Richard Bridgford, a lawyer representing the victims, believes the Eaton Fire was ignited due to SCE’s negligence.
As of Monday, at least 24 people have died in the fires, with many more reported missing. Over 12,300 structures have been destroyed, and estimated economic losses range from $250 billion to $275 billion. The investigation has led to a decline in shares for other utilities, including Pacific Gas & Electric (PG&E) and some commercial property insurers.
Meanwhile, PG&E filed for Chapter 11 bankruptcy last year due to billions in legal claims related to past California wildfires. Insured losses from the fires total over $20 billion, according to JPMorgan’s note.
Source: https://finance.yahoo.com/news/southern-california-edison-parents-stock-falls-amid-investigation-lawsuit-over-alleged-role-in-la-wildfires-184013329.html