Hawaiian Electric Industries, Inc. (HEI) and Hawaiian Electric Company, Inc. have entered into a Stipulation of Settlement to resolve several stockholder derivative actions. The settlement, which totals $100 million, is intended to address claims related to alleged mismanagement and breaches of fiduciary duties by certain individual defendants. The settlement is funded by the company's insurers and is contingent upon approval by the boards of directors and final court approval. The settlement aims to resolve claims arising from the devastating wildfires in Maui in August 2023, which plaintiffs allege were exacerbated by the company's inadequate fire prevention measures. The agreement includes a provision for attorneys' fees amounting to 25% of the settlement proceeds, plus expenses not exceeding $475,000. The settlement is seen as a significant step towards restoring investor confidence and mitigating potential financial liabilities stemming from the ongoing legal challenges faced by the company. The preliminary approval of the settlement was granted by the United States District Court for the District of Hawaii, with a final approval hearing scheduled for May 28, 2026. This settlement is expected to provide a degree of financial relief and clarity for HEI as it navigates the aftermath of the wildfires and the associated legal landscape.

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