Faruqi & Faruqi LLP has launched an investigation into potential securities law violations by Edison International following allegations the utility misrepresented its wildfire prevention measures. The New York-based law firm is alerting investors to an April 21 deadline for lead plaintiff applications in a federal class action alleging Edison and its executives made false statements about Southern California Edison’s Public Safety Power Shutoff (PSPS) program.
The lawsuit claims Edison falsely portrayed its PSPS program as effectively mitigating wildfire risks from power lines during extreme weather. According to court documents filed January 13 in Los Angeles Superior Court, photographic evidence and witness testimony suggest Edison equipment may have sparked recent wildfires. These allegations triggered an 11.89% stock price drop for Edison that day, followed by another 2.4% decline on February 6 after The Wall Street Journal reported the utility acknowledged possible equipment involvement in the Hurst Fire.
The legal action alleges these revelations exposed Edison to significant financial liabilities while rendering previous corporate statements about operational safety “materially false and misleading.” Faruqi & Faruqi, which has recovered hundreds of millions for investors since 1995, is now gathering additional evidence from whistleblowers, former employees, and shareholders regarding Edison’s wildfire prevention claims and practices.
Investors who purchased Edison securities and suffered losses may qualify for lead plaintiff status in the class action. The court will appoint the investor with the largest financial interest who adequately represents class members. Legal experts note participation decisions don’t affect potential recovery amounts, though lead plaintiffs assume oversight responsibilities for the litigation.
The case highlights growing scrutiny of California utilities’ wildfire prevention measures following catastrophic fires in recent years. As Edison faces these allegations, the outcome could influence how investors evaluate utility companies operating in high-fire-risk regions. Faruqi & Faruqi continues investigating whether Edison violated federal securities laws by allegedly overstating the effectiveness of its safety protocols while understating wildfire-related risks.
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