Bullish indicating open at $55-$60, IPO prices at $37
Investing.com -- Hawaiian Electric Industries (NYSE:HE) stock climbed 7% amid a favorable Hawaii Supreme Court decision regarding insurance subrogation claims related to the Maui wildfire tort litigation. This rise added to the previous day’s 8% gain, reflecting investor optimism about the company’s legal standing and potential financial stability.
The court’s decision, announced on February 10, 2025, clarified that insurers cannot pursue additional legal action against defendants, including Hawaiian Electric, for amounts beyond what was agreed upon in settlements with plaintiffs. This ruling is seen as a win for the company, aligning with its position against the insurers’ challenges to the settlement agreements.
HEI’s president and CEO, Scott Seu, expressed satisfaction with the outcome, stating, "We are pleased that today’s decision aligns with our arguments and was issued on an accelerated timeline. The decision helps move the settlement forward, bringing increased certainty to those who suffered loss in the Maui wildfires, while providing more clarity for our company’s path toward reestablishing our financial stability." He further noted that the resolution of the reserved questions reinforces the settlement’s durability, aiding the company in fulfilling its commitments to affected individuals and the community.
Investors have responded positively to the Supreme Court’s decision, which is a crucial step in finalizing the settlement agreements from the Maui wildfire litigation. The Second Circuit Court on Maui will now proceed with considering these agreements for final judicial approval. A detailed written opinion from the Hawaii Supreme Court is expected in the upcoming weeks, which may provide further insights into the court’s rationale and the implications for Hawaiian Electric’s financial future.
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