Edison International Faces Class Action Over Fire Safety Assurances

ROSEMEAD, California — Edison International, the parent company of Southern California Edison (SCE), has been hit with a proposed class-action lawsuit by disgruntled shareholders who allege the company misled them regarding its wildfire risk mitigation strategies. This lawsuit, filed on Tuesday, is rooted in the aftermath of the devastating Eaton Fire that erupted in Altadena, California, on January 7, 2025.

The Eaton Fire, fueled by fierce Santa Ana winds, has scorched more than 14,000 acres, destroyed over 9,400 structures, and resulted in the tragic loss of 17 lives. According to the shareholders, led by Felipe Antillon, Edison made false assurances about its ability to shut down power lines to prevent such catastrophic damage, leading to significant drops in its stock price — which has plummeted by 34% since the blaze ignited.

The shareholders contend that for nearly four years leading up to the fire, Edison misrepresented the efficacy of its power shutoff program, which was marketed as a proactive measure during extreme weather events. They claim that reports revealing that nearby power lines were not de-energized prior to the Eaton fire contradict Edison’s assertions.

“We relied on their statements, which turned out to be misleading,” said Antillon. “It is unacceptable for companies to mislead their investors, especially when public safety is at stake.”

In response, Edison has stated that it will review the complaint but has not provided further commentary. Other defendants listed in the lawsuit include CEO Pedro Pizarro and CFO Maria Rigatti.

Additionally, this lawsuit is indicative of a broader pattern of litigation following significant wildfires in California. The legal ramifications of these fires are immense, and experts estimate that the losses resulting from the recent LA wildfires could exceed $20 billion, potentially making it one of the costliest natural disasters in U.S. history.

The lawsuit also seeks unspecified damages for shareholders from February 25, 2021, to February 6, 2025, the date on which Edison acknowledged possible links between its equipment and the fires.

Further complicating matters, investigations into the Eaton Fire are ongoing, with evidence emerging that SCE’s equipment may have been responsible for starting the blaze. Videos and reports of electrical arcing near transmission towers fuel suspicion that the utility’s negligence contributed to the fire’s ferocity.

California law allows for inverse condemnation claims, meaning property owners may hold utilities responsible for damages incurred due to their operations, even without proving negligence. Attorney assessments suggest that SCE could face several lawsuits from affected residents seeking damages for loss of property and business interruptions.

As courts begin to tackle the wave of wildfire litigation, experiences from past settlements, such as PG&E’s $13.5 billion settlement for 2018’s Camp Fire, will likely serve as significant benchmarks in the ongoing legal proceedings.

The broader consequences of the current legal climate around utilities and wildfire prevention may lead to substantial reforms in how utility companies manage their infrastructure and respond to extreme weather forecasts in the future.