Edison International, the parent company of Southern California Edison (SCE), is facing a class-action lawsuit from shareholders who claim the company misled them about its wildfire prevention efforts. The lawsuit alleges that Edison provided false assurances regarding its de-energization strategies, which were meant to mitigate wildfire risks during extreme weather. This legal action comes in the wake of the Eaton Fire, which ignited on January 7, 2025, in Altadena, California. The fire, fueled by strong Santa Ana winds, burned thousands of acres, destroyed thousands of structures, and resulted in multiple fatalities.
The shareholders argue that despite Edison’s public claims of taking preventive measures, the company failed to shut off power lines near the fire’s origin, potentially contributing to the disaster. Following the fire, Edison’s stock value dropped significantly—by roughly 34%. The lawsuit seeks damages for investors who purchased shares between February 2021 and February 2025.
This case highlights the growing scrutiny on utility companies operating in wildfire-prone regions and their responsibilities to both the public and investors. The outcome of the lawsuit could impact Edison’s financial stability and force the company to reevaluate its wildfire prevention policies.
This blog is intended to provide information to the general public and to practitioners about developments that may impact Oregon class actions.
