Shareholder Lawsuit Accuses Edison of Wildfire Fraud

Southern California Edison is facing a proposed class-action lawsuit from shareholders alleging fraud related to its wildfire mitigation claims prior to the Eaton fire, which occurred on January 7, 2025. The lawsuit accuses Edison International of misleading investors by stating it could effectively shut down power lines to minimize wildfire risks, despite evidence suggesting otherwise. The Eaton fire burned over 14,000 acres and resulted in significant destruction and loss of life, leading to a 34% drop in Edison's share price since the incident. Shareholders claim the company made materially false statements for nearly four years before the fire, which they argue contributed to the disaster. Amid ongoing investigations, Edison has expressed its intent to review the lawsuit and preserve evidence, while facing more than 50 related lawsuits. The case highlights ongoing tensions between utility companies and their responsibilities in wildfire prevention amidst extreme weather conditions.