HEI Provides Update Following Global Settlement in Maui Wildfire Tort Litigation By Investing.com

HONOLULU–(BUSINESS WIRE)–Hawaiian Electric Industries, Inc. (NYSE: HE) (HEI), today announced that HEI and its subsidiary, Hawaiian Electric Company, Inc. (Hawaiian Electric), and other entities have reached an agreement in principle to resolve all tort claims related to the August 2023 wildfires in Maui.

HEI and Hawaiian Electric, State of Hawaiʻi, County of Maui, Kamehameha Schools, West Maui Land Co., Telcom of Hawaii and Spectrum/Charter Communications have agreed to the terms of the proposed settlement with lead individual and class counsel. they are not complaining. Under the proposed terms, which remain subject to final documents and court approval and do not include any admission of liability, the defendants will pay more than $4 billion to settle all criminal claims stemming from Aug. 8, 2023 wildfire in Maui. The settlement will resolve all claims between the defendants. HEI and Hawaiian Electric's contribution totals $1.99 billion (before tax) and includes $75 million previously contributed to the One ʻOhana Initiative, to be paid in four installments.

Scott Seu, President and CEO of HEI, said, One of our core values ​​in Hawaii is the concept of you are farming, which means many hands working together. Our board and management are pleased to have reached this agreement on principle in an expeditious manner, which embodies the spirit of this concept as we move forward together. Not only is this good for our community, but we are confident that this agreement represents the best outcome for HEI, as it provides a clear vision for the resolution of the case related to the wildfire and increased certainty for our company's future direction. In the coming months, we will focus on finalizing the deal and getting our business back on track.

Settlement Details

The settlement terms were reached after four months of mediation between the defendants and attorneys representing the plaintiffs in Lahaina and Upcountry Maui. At this point, the proposed settlement is an agreement between the defendants and the attorneys representing the individual plaintiffs and the class. The settlement is contingent on the settlement of claims by insurance companies that have paid claims for property loss and other damages, without additional payments from the defendants. Under the terms of the agreement, individual plaintiffs and insurers have 90 days to reach an agreement on the distribution of the total amount paid between those parties, or a judge decides that the insurers» exclusive remedy is to seek reimbursement for the payments. made to each claimant, among other conditions. Once the final settlement agreement is signed, it will go into effect after a fair review and approval. Payments will begin after such approval and are expected to be made before mid-2025.

Financial Review

With the settlement now in place, HEI is clearly moving forward on the scope of its liabilities related to the Maui wildfire lawsuit. HEI and Hawaiian Electric are working closely with their financial advisors to develop a financing plan for their compensation offering and intend to fund the settlement payments through a mix of debt, common equity, equity-linked securities, or other options, if any. there is no assurance at this time regarding the availability or terms of any such funds.

HEI will also discuss compensation in its quarterly earnings call scheduled for Friday, August 9.

ABOUT HEI

The HEI family of companies provides the energy and financial services that power much of Hawaii's economic and community activity. HEI's electric company, Hawaiian Electric, provides power to nearly 95% of Hawaii's population and is making a major effort to decarbonize its operations and the broader national economy. Its banking subsidiary, American Savings Bank, is one of Hawaii's largest financial institutions, offering a variety of banking and other financial services and working to promote economic growth, affordability and financial well-being. HEI also helps advance Hawaii's sustainability goals through investments through its non-controlled subsidiary, Pacific Current. For more information, visit www.hei.com.

Forward-Looking Statements

This statement may contain forward-looking statements, which include statements that are predictive in nature, dependent on or referring to future events or conditions, and generally include words such as will, expect, expect, target, plan, believe, predict, estimate or similar expressions. In addition, any statements regarding future financial performance, ongoing business strategies or future prospects or actions are also forward-looking statements. Forward-looking statements are based on current expectations and assumptions about future events and are subject to risks, uncertainties and the accuracy of assumptions regarding HEI, Hawaiian Electric and its subsidiaries, the performance of the industries in which they do business and the economy, politics and their subsidiaries. market characteristics, among other things. These forward-looking statements are not guarantees of future performance.

The forward-looking statements in this statement should be read in conjunction with the Cautionary Note Regarding Forward-Looking Statements and Risk Factors (incorporated by reference herein) set forth in HEI's Annual Report on Form 10-K for the year ended December 31, 2023 and HEI's other periodic reports that discuss important matters. which could cause HEI's results to differ materially from those anticipated in such statements. These forward-looking statements speak only as of the date of the report, presentation or filing. Except to the extent required by federal securities laws, HEI, Hawaiian Electric and their subsidiaries undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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Investor Contact
Matheo Garcia
Director, investor relations
ir@hei.com
(808) 543-7300

Media contact
Julie Smolinski
VP, Strategy and Business Sustainability
media@hei.com
(808) 543-5874

Source: Hawaiian Electric Industries (NYSE:), Inc.