Hawaiian Electric $47.75M Securities Class Action Settlement

William C. Gendron

Editor in Chief

Published

March 24, 2026 10:11 AM

Updated

March 24, 2026

Who can file a claim?

The settlement includes all persons and entities who purchased or otherwise acquired Hawaiian Electric Industries Inc. common stock between Feb. 28, 2019, and Sept. 4, 2023, inclusive, and allegedly suffered damages as a result.

Additional details

Both individuals and entities can be class members.
The actual beneficial owner or a legal representative must submit the claim.
All joint beneficial owners must sign the claim form.
Agents, executors, administrators, guardians and trustees may submit claims on behalf of others and must provide proof of authority.
Each separate legal entity must submit a separate claim.

How much can class members get?

The total settlement fund is $47,750,000. The amount each class member will receive depends on several factors:

The number of valid claims submitted
The number of shares purchased or acquired during the class period
The timing of each purchase, sale and holding
The total recognized losses of all claimants

The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation:

The estimated average recovery is approximately $0.57 per eligible share before deductions for court-approved fees and expenses. After estimated deductions of $0.20 per eligible share, the net average recovery is approximately $0.37 per share.
Actual payments may be higher or lower depending on individual claims and the total number of valid claims.
The settlement administrator will calculate each class member's payment based on the recognized loss amount assigned to each transaction.
Recognized loss amounts depend on purchase and sale timing. The settlement administrator will calculate them using the court-approved plan of allocation, which applies different formulas depending on when class members purchased and sold shares.

For shares sold before Aug. 8, 2023, the recognized loss is $0.
For shares sold between Aug. 8, 2023, and Sept. 4, 2023, the recognized loss is the artificial inflation on the date of purchase minus the artificial inflation on the date of sale.
For shares sold between Sept. 5, 2023, and Nov. 30, 2023 (the 90-day lookback period), the recognized loss is the lesser of the artificial inflation at purchase or the purchase price minus the 90-day lookback value on the date of sale (Page 11 of the settlement notice).
For shares held as of the close of trading on Nov. 30, 2023, the recognized loss is the lesser of the artificial inflation at purchase or the purchase price minus $12.70 (the average closing price during the 90-day lookback period).

The settlement administrator will set any recognized loss that calculates to a negative number to $0.
If total recognized claims exceed the net settlement fund, the settlement administrator will reduce payments on a pro rata basis.
Class members whose payment would be less than $10 will not receive a payout.

How to claim a Hawaiian Electric securities class action settlement payment

Class members may file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The claim deadline is June 25, 2026.

Settlement administrator's mailing address: Hawaiian Electric Securities Settlement, c/o Verita Global LLC, P.O. Box 301133, Los Angeles, CA 90030-1133

Proof or documentation required to submit a claim

All class members must provide the last four digits of their Social Security number or full taxpayer identification number. They must also provide holdings and transaction information, including:

Number of shares of HEI common stock held as of the close of trading on Feb. 27, 2019
Trade dates for purchases, acquisitions and sales from Feb. 28, 2019, through Nov. 30, 2023
Number of shares purchased, acquired or sold
Price per share and total purchase or sale price
Number of shares held as of the close of trading on Nov. 30, 2023

Class members must also provide documentation to support their transactions in HEI common stock. Acceptable proof includes:

Broker confirmation slips
Broker account statements
Authorized statements from a broker containing transactional and holding information

Payout options

Physical check

$47.75 million settlement fund

The $47,750,000 settlement fund includes:

Settlement administration costs: To be determined
Attorneys' fees: Up to $15,916,667
Attorneys' expenses: Up to $500,000
Service award to lead plaintiff: Up to $10,000 total
Payments to eligible class members: Remainder of the fund

Important dates

Opt-out deadline: June 25, 2026
Deadline to file a claim: June 25, 2026
Fairness hearing: Aug. 13, 2026

When is the Hawaiian Electric securities class action settlement payout date?

The settlement administrator will issue payments after it processes all claims and the court resolves any appeals and grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged Hawaiian Electric Industries Inc., Hawaiian Electric Co. Inc. and certain officers made materially false and misleading statements and omissions regarding the company's efforts to mitigate wildfire risk, including replacement of uninsulated power lines, utility pole maintenance and trimming of vegetation, in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The plaintiffs claimed these misrepresentations concealed the true risk of wildfires, leading to investor losses when the risk materialized in the August 2023 Lahaina wildfire.

The defendants denied all allegations of wrongdoing but agreed to settle to avoid the costs, risks and delays of continued litigation.