Hawaiian Electric $47.75 Million Securities Settlement Final Approval, Judge Cuts Attorneys’ Fees to $9.55 Million

A federal judge has granted final approval to Hawaiian Electric Industries’ $47.75 million securities class action settlement, resolving investor claims that the company and several executives misled shareholders about wildfire risk before the deadly 2023 Maui fires.

The October 23, 2026 ruling also reduced class counsel’s fee request from $14.325 million to $9.55 million after U.S. District Judge Jacqueline Scott Corley found serious problems with the lawyers’ billing records. The order further shows that the settlement administrator received 67,472 claims but accepted only 24,306 as valid.

The claim deadline of June 25, 2026 has passed, and no payment date has been announced. Official updates are posted at the official settlement website.

This is an investor settlement. It does not compensate people who lost homes, businesses or loved ones in the Maui wildfires.

Quick Facts: Hawaiian Electric Securities Settlement

Detail	Information
Settlement amount	$47,750,000
Case	Bhangal v. Hawaiian Electric Industries, Inc.
Case number	3:23-cv-04332-JSC
Court	U.S. District Court, Northern District of California
Judge	Jacqueline Scott Corley
Final approval	October 23, 2026
Class period	February 28, 2019 – September 4, 2023
Official settlement website	hawaiianelectricsecuritiessettlement.com
Claim form	Closed (deadline was June 25, 2026)
Claims administrator	Verita Global, LLC
Claims received / valid	67,472 / 24,306
Attorneys’ fees requested	$14,325,000 (30%)
Attorneys’ fees approved	$9,550,000 (20%)
Payment date	Not announced
Next court deadline	November 6, 2026 (proposed judgment due)

What Is the Hawaiian Electric Securities Lawsuit About?

The lawsuit followed the August 2023 Maui wildfires, which devastated Lahaina and surrounding communities and killed more than 100 people.

Investors alleged that Hawaiian Electric Industries (HEI), its subsidiary Hawaiian Electric Company, and several executives made misleading statements about the company’s wildfire risk management. The statements concerned practices such as:

• Replacing uninsulated power lines
• Maintaining utility poles and electrical infrastructure
• Trimming vegetation around power lines
• Taking measures to reduce wildfire risk

According to the complaint, these statements gave investors an inaccurate picture of the company’s wildfire preparedness, which allegedly kept its stock price artificially inflated until the disaster and later disclosures revealed the problems.

The lawsuit asserted violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5. These provisions address material misstatements or omissions in connection with securities transactions, and liability for those who control the company. Claims under them generally require showing intent or recklessness, plus resulting investor losses.

The defendants denied wrongdoing. The case never reached a trial verdict. The parties settled while the defendants’ second motion to dismiss was pending, and the settlement is not an admission of liability.

Judge Approves the $47.75 Million Settlement

On October 23, 2026, Judge Corley granted final approval. The settlement resolves claims for investors who purchased or otherwise acquired qualifying HEI common stock between February 28, 2019 and September 4, 2023 and suffered losses under the court-approved Plan of Allocation.

Under Federal Rule of Civil Procedure 23, the court had to decide whether the deal was fair, reasonable and adequate. It weighed the risks of continuing the case, the cost of further discovery and trial, and the chance that investors could recover less, or nothing, if the defendants prevailed. The settlement gives eligible claimants a guaranteed recovery without a lengthy trial and appeals.

Why Did the Judge Reduce the Attorneys’ Fees by Nearly $4.8 Million?

Class counsel asked for 30% of the fund, or $14,325,000. Judge Corley awarded 20%, or $9,550,000, which leaves about $4.775 million more in the fund for investors.

The 25% Benchmark

In the Ninth Circuit, 25% of a common settlement fund is the usual benchmark for reasonable fees, though courts can depart from it. The judge found counsel had not justified going above that benchmark. The settlement represented less than 3% of estimated damages, and the case settled relatively early.

Problems With the Billing Records

Class counsel claimed a lodestar of about $4.63 million for 5,779.15 hours. A lodestar is reasonable hours multiplied by reasonable hourly rates. The court found several problems:

1. Duplicated work: Two firms billed for overlapping tasks, including work on motions to dismiss.
2. Block billing: Some entries showed repeated blocks of more than eight hours for similar tasks on consecutive days.
3. Work after settlement: More than one-third of the billed time, roughly 1,946 hours worth nearly $1.3 million, was recorded after the parties reached their settlement in November 2025.
4. Weak documentation: Counsel did not adequately justify several hourly rates or the hours claimed.

The judge estimated a reasonable lodestar was closer to $2.5 million than $4.63 million, and the order was sharply critical of the billing records. The court still recognized that counsel obtained a substantial recovery despite litigation risk, so it awarded 20% rather than cutting further.

Other Fee and Cost Rulings

Item	Requested	Approved
Attorneys’ fees	$14,325,000	$9,550,000
Pomerantz LLP litigation costs	$133,938.30	$133,938.30
Levi & Korsinsky litigation costs	$43,297.37	$0
Lead plaintiff service award	$10,000	$0
Settlement administration costs	Subject to court approval	$500,000

The court declined to reimburse Levi & Korsinsky’s separate costs because the firm kept working as though it were co-lead counsel despite an earlier order rejecting that arrangement. It also denied the lead plaintiff’s $10,000 service award, explaining that the Private Securities Litigation Reform Act does not allow that type of incentive award without qualifying costs, expenses or lost wages.

How Many Investors Actually Have Valid Claims?

Verita Global received 67,472 claim submissions and deemed 24,306 valid. That means 43,166 claims were rejected.

The judge initially raised concern about the high rejection rate but accepted the administrator’s explanations. Common reasons included:

• No recognized loss under the Plan of Allocation
• Ineligible security types
• Transactions outside the February 28, 2019 – September 4, 2023 class period
• Insufficient documentation to verify transactions

The administrator also explained that many submissions came from third-party filers such as brokerages, custodians, law firms and claims-processing services, which filed for accounts that might have qualified but ultimately did not.

The 24,306 valid claims represent about 60 million shares, or roughly 75% of the damaged shares estimated by the damages expert. The administrator reported that none of the rejected claimants challenged their denials during the appeal period.

Who Qualified for the Settlement?

The class covers persons and entities that purchased or otherwise acquired HEI common stock from February 28, 2019 through September 4, 2023, inclusive, and suffered damages under the Plan of Allocation. Owning the stock during those years was not enough. The administrator reviewed transaction records, security types, purchase and sale dates, and recognized losses.

Certain defendants, company insiders, specified related persons and entities, and anyone who properly opted out are excluded.

How Much Money Will Each Investor Receive?

There is no fixed payment amount. The $47.75 million is the gross fund, not the amount available for distribution. The court approved deductions of $9.55 million in attorneys’ fees, $133,938.30 in litigation costs and $500,000 in administration costs. Taxes and other approved expenses may also reduce the fund.

The remainder will be divided among authorized claimants pro rata, based on each claimant’s recognized loss. Buying more shares does not guarantee a particular percentage, because the calculation also considers transaction timing, sales and the total pool of valid claims. No individual payment schedule has been published.

When Will Payments Be Sent?

No payment date has been announced. The key upcoming deadline is November 6, 2026, when the parties must submit a proposed judgment. That is not a payment date.

As of October 31, 2026:

• Final approval has been granted.
• Attorneys’ fees of $9.55 million have been approved.
• 24,306 claims have been accepted as valid.
• The claim deadline has passed.
• The proposed judgment is due November 6, 2026.
• No distribution date has been announced.

Payments cannot be confirmed until judgment is entered and the remaining administration and distribution steps are complete. After distribution, class counsel must file an accounting covering the number of paid claims, average and median recoveries, administrative expenses and attorneys’ fees. Check the official settlement website for updates. Verita Global is the administrator.

Is This the Same as the $4 Billion Maui Wildfire Settlement?

No. The $47.75 million securities settlement covers financial losses of investors who bought qualifying HEI stock. The roughly $4.037 billion Maui wildfire global settlement covers property damage, injuries, wrongful deaths and economic losses from the fires. A Lahaina homeowner does not qualify for the securities settlement because of a property loss, and an HEI shareholder does not automatically qualify for the victim settlement. For the victim side, read our coverage of the Maui wildfire settlement and the Hawaii Supreme Court’s attorney fee cap ruling.

How Is This Different From the $100 Million Derivative Settlement?

A securities class action seeks recovery for investors who allegedly lost money because of misleading statements. A shareholder derivative action is brought on behalf of the company itself, typically alleging that officers or directors harmed it. The related $100 million derivative settlement is a separate proceeding and should not be confused with the $47.75 million investor fund. For another wildfire-related investor case, see our report on the PG&E wildfire securities settlement.

What Should Investors Do Now?

If you filed a claim by June 25, 2026:

1. Keep your claim confirmation and brokerage records.
2. Check the official settlement website for judgment and distribution updates.
3. Watch for communications from Verita about your claim status.
4. Contact the administrator if you have questions about an accepted claim or payment details.
5. Beware of anyone who contacts you asking for fees or sensitive financial information to release a settlement payment. Legitimate settlement payments do not require upfront fees.

If your claim was rejected, the order states the administrator gave written reasons and the appeal period has expired.

If you did not file by June 25, 2026, the deadline has passed and no new filing period is currently available. A class member who did not properly opt out may still be bound by the settlement’s release even without receiving payment. If you are unsure about your rights, speak with a licensed attorney. For background on the earlier claim process, see our Hawaiian Electric securities settlement claim guide.

Frequently Asked Questions

Is the Hawaiian Electric $47.75 million settlement approved?

Yes. Judge Jacqueline Scott Corley granted final approval on October 23, 2026 in Bhangal v. Hawaiian Electric Industries, Inc., Case No. 3:23-cv-04332-JSC.

How much did the judge award the attorneys?

$9.55 million, or 20% of the fund. That is about $4.775 million less than the $14.325 million requested.

Why did the judge cut the attorneys’ fees?

The request exceeded the Ninth Circuit’s 25% benchmark without adequate justification, and the court found duplicated work, block billing, weak documentation and substantial time billed after the settlement was reached.

How many claims were accepted?

Verita received 67,472 submissions and deemed 24,306 valid. The other 43,166 were rejected.

Can investors still file a claim?

No. The claim deadline was June 25, 2026, and no new filing period is currently available.

When will the settlement pay?

No payment date has been announced. The parties must submit a proposed judgment by November 6, 2026.

Does the settlement compensate Maui wildfire victims?

No. It compensates eligible investors for securities losses. Injury, property damage and wrongful death claims were handled separately.

Does Hawaiian Electric admit wrongdoing?

No. The defendants denied the allegations, and the settlement is not an admission of liability.

What is the official settlement website?

hawaiianelectricsecuritiessettlement.com. Verita Global administers the settlement.

Can someone who missed the deadline still sue?

Not necessarily. Class members who did not properly opt out may be bound by the judgment and release. Discuss individual questions with a qualified attorney.

Sources and Legal References

1. Final Approval Order, Bhangal v. Hawaiian Electric Industries, Inc., No. 3:23-cv-04332-JSC (N.D. Cal. Oct. 23, 2026), Dkt. 150.
2. Official Hawaiian Electric Securities Settlement Website: https://www.hawaiianelectricsecuritiessettlement.com/
3. Stipulation of Settlement (January 5, 2026).
4. Order Granting Preliminary Approval (March 3, 2026), Dkt. 124.
5. Hawaiian Electric Industries SEC filings concerning the securities and derivative settlements.
6. Bloomberg Law, October 26, 2026, reporting on final approval and the fee reduction.
7. Law360, October 26, 2026, reporting on the court’s criticism of the billing records.

Disclaimer: This article is for informational purposes only and is not legal or investment advice. AllAboutLawyer.com is not a law firm. Settlement eligibility, payment amounts and legal rights depend on the court orders and individual circumstances. Consult a licensed attorney about your situation.