Traders Inflate Hawaiian Electric's Stock 24% Amid Maui Wildfire Settlement Rumors

Hawaiian Electric just saw its stock shoot up significantly, reaching its highest point in ten months. The reason? Rumors are swirling about a potential settlement deal for the Maui wildfires that made national news, and it’s got everyone talking.

Hawaiian Electric's stock didn't just surge—it skyrocketed a dazzling 24% early Wednesday, making shareholders feel like they were riding a surfboard on a massive wave. 

By midday, over 10 million shares had changed hands, leaving the usual 2.9 million shares in the dust. As of this writing, the stock is still hanging ten with a 17.7% gain. What’s all the buzz about? A recent news flash from KHON2 in Honolulu, revealed a settlement is moving through the Maui County Council. 

To give you some background, the wildfires on August 8, 2023, were devastating, turning Lahaina into a disaster zone. Leaving 102 people dead and $6 billion in damages, it was a major catastrophe. 

(Source: Los Angeles Times)

Hawaiian Electric has been under intense scrutiny ever since, facing accusations from victims’ families for not turning off power lines despite knowing the wildfire risk. 

Maui County also sued them, claiming they didn’t prepare their equipment properly. And then like a guilty little brother, Hawaiian Electric counter-sued, blaming the county.

Just when you thought things couldn’t get worse for Hawaiian Electric, the company hit a 40-year low. Their stock dropped to $8.74 after a leaked report suggested first responders weren’t at fault for the fires. 

Shares fell as much as 18%, marking the lowest point since October 1984, the same year Cyndi Lauper released this banger. Meanwhile, conspiracy theorists were busy concocting tales about space lasers and Oprah's real estate empire.

Back to the present: Hawaiian Electric’s shares took off thanks to the settlement news. A council committee held a private meeting on Tuesday to discuss the settlement but kept the details secret. No one’s saying how much money is on the table to settle the claims, but just the thought of a resolution caused traders to hit the buy button.

The specifics are still under wraps. How much will the settlement be? When will the affected folks see any money? Will this settlement be enough to prevent further lawsuits? I guess like usual we’ll just have to wait and see.

Stock.News does not have positions in companies mentioned.