Hawaiian Electric Industries
shares surged Monday after the company pushed back against accusations its power lines caused a deadly wildfire on the island of Maui in Hawaii.
Hawaiian Electric
(ticker: HE) shares were up 38% to $13.35 after the utility suggested it intends to defend itself as it faces lawsuits around the devastating wildfires in Hawaii earlier this month.
The company’s shares were down 77% this year as of Friday’s close as it grapples with the fallout from the fires, which caused it to suspend its dividend in an effort to boost its cash position.
Monday’s move would be the largest percentage increase on record for the stock, according to Dow Jones Market Data.
Maui County alleged in a lawsuit last Thursday that the company acted negligently by failing to power down equipment on the island despite a National Weather Service warning.
“We were surprised and disappointed that the County of Maui rushed to court even before completing its own investigation,” Hawaiian Electric‘s CEO Shelee Kimura said. “We believe the complaint is factually and legally irresponsible.”
Hawaiian Electric said that, while one fire appeared to have been caused by power lines that fell in high winds, it was later extinguished by the local fire department. The utility said all its power lines in West Maui had been de-energized for more than six hours by the time the second fire began that destroyed the town of Lahaina and caused at least 115 deaths.
“Unfortunately, the county’s lawsuit may leave us no choice in the legal system but to show its responsibility for what happened that day,” Kimura said.
The County of Maui’s legal representatives didn’t respond to a request for comment early on Monday.
Write to Adam Clark at [email protected]
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