Southern California Edison’s parent company is under legal fire from its own investors, accused of misleading shareholders about its wildfire prevention measures before a devastating blaze tore through Los Angeles County.
A proposed class-action lawsuit, filed Tuesday, claims Edison International falsely reassured investors that its power shutoff program could prevent wildfires by proactively de-energizing lines during extreme weather. The lawsuit comes in the wake of the Eaton Fire, which erupted on January 7 in Altadena amid fierce Santa Ana winds, scorching over 14,000 acres, destroying thousands of structures, and claiming 17 lives.
The legal action, led by shareholder Felipe Antillon, alleges Edison misrepresented its wildfire mitigation strategies for nearly four years. Investors say the utility’s assurances crumbled as reports surfaced that it had not shut off power in areas affected by the blaze. Meanwhile, lawsuits linking the fire to Edison’s electrical equipment have only intensified scrutiny.
Edison’s stock has plummeted 34% since the fire broke out. On February 6, the company acknowledged it had received information suggesting its infrastructure might have played a role in igniting both the Eaton and Hurst fires.
The lawsuit, covering shareholders from February 2021 to February 2025, seeks damages and names Edison’s top executives as defendants. With mounting legal battles and billions in potential liabilities, the recent Los Angeles wildfires could go down as one of the costliest natural disasters in U.S. history.
