Southern California Edison parent's stock falls amid investigation, lawsuit over alleged role in LA wildfires
Published On Jan 13, 2025, 1:40 PM
Edison International, the parent company of Southern California Edison, saw its stock plunge over 12% due to an ongoing investigation by California fire authorities regarding its potential role in starting recent wildfires in Los Angeles. The utility is under scrutiny for a power line that fell shortly before one of the fires ignited. Concurrently, a mass action lawsuit has been filed against the utility, adding to the pressure on its stock as losses climb from these devastating fires. Edison International's stock has dropped nearly 30% in just a week, reflecting investor concerns about the legal and financial ramifications of the disasters. The ongoing investigation could lead to significant financial liabilities, much like what has previously happened with PG&E.
Stock Forecasts
EIX
Negative
Given the ongoing investigations and lawsuits pertaining to widespread damage caused by wildfires, it is likely that Edison International will continue to face headwinds which could lead to further stock declines in the near term. The uncertainty around potential financial liabilities tends to create a negative sentiment among investors, prompting them to sell off shares.
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