Why Hawaiian Electric Industries Shares Are Rocketing Today
Hawaiian Electric Industries, Inc. (NYSE:HE) shares are surging today following a report suggesting the company reached a settlement plan over the Maui wildfires.
Hawaiian Electric Industries is among the companies that have tentatively agreed to pay over $4 billion to resolve hundreds of lawsuits, Bloomberg reported, citing people familiar with the deal.
Hawaiian Electric is responsible for roughly $1.5 billion of the settlement, with the shares of other companies still being determined. The settlement is set to be paid out over four years, the report further noted.
The proposed settlement, pending final approval, aims to resolve lawsuits from thousands of homeowners and businesses against Hawaiian Electric.
The tentative settlement also includes a Charter Communications, Inc. (NASDAQ:CHTR) unit and state and local governments.
However, the deal is not yet final and could still fall through, as per the report.
The proposed settlement is less than the estimated $5.5 billion capital cost from the fires, which damaged or destroyed 2,207 structures, mostly residential, according to last year’s damage assessment.
Investors can gain exposure to the stock via IShares U.S. Infrastructure ETF (BATS:IFRA) and First Trust Small Cap Value AlphaDEX Fund (NASDAQ:FYT).
Price Action: HE shares are up 32.9% at $16.94 at the last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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