Faruqi & Faruqi LLP has launched an investigation into potential securities violations by Edison International following allegations the utility misrepresented wildfire prevention efforts. The prominent securities law firm is alerting investors to an April 14 deadline for lead plaintiff applications in a class action alleging Edison made false claims about its Public Safety Power Shutoff (PSPS) program’s effectiveness.
The lawsuit claims Edison and executives violated federal securities laws by overstating the PSPS program’s ability to prevent wildfires while understating the company’s exposure to wildfire-related liabilities. These alleged misrepresentations occurred between February 2021 and February 2025, a period when California experienced several devastating wildfires potentially linked to utility equipment.
Legal troubles escalated in January 2025 when lawsuits filed in Los Angeles Superior Court presented eyewitness accounts and photographic evidence connecting Edison’s power lines to the Eaton Canyon Fire. The utility’s stock plummeted 11.89% following these revelations. Further declines occurred in February when The Wall Street Journal reported Edison acknowledged its equipment may have sparked the Hurst Fire.
Investors who purchased Edison securities during the class period may qualify for lead plaintiff status. Faruqi & Faruqi, which has recovered hundreds of millions for investors since 1995, is gathering additional evidence from whistleblowers and former employees. The firm notes participation decisions don’t affect potential recovery amounts, though lead plaintiffs assume litigation oversight responsibilities.
The case highlights growing investor scrutiny of utility companies operating in wildfire-prone regions. As climate change intensifies wildfire risks, such lawsuits may pressure utilities to strengthen infrastructure protections and improve risk disclosures to shareholders. The outcome could influence how energy firms communicate operational risks in environmentally vulnerable areas.
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