Investors who bought Hawaiian Electric Industries securities between February 28, 2019 and September 4, 2023 had their $47.75 million class action settlement approved by a federal judge on October 23, 2026. Claims closed June 25, 2026, so nothing new can be filed; the 24,306 accepted claimants will share the fund once a payment date is set.
What Happened
U.S. District Judge Jacqueline Scott Corley granted final approval on October 23, 2026 to the $47.75 million settlement in Bhangal v. Hawaiian Electric Industries, Inc., No. 3:23-cv-04332, in the U.S. District Court for the Northern District of California. The investor suit alleged that Hawaiian Electric Industries (HEI) and its top officials misled shareholders into believing the utility was taking appropriate steps to reduce wildfire risk. No court has found that HEI or its officials did anything wrong; the case settled before the court ruled on the amended complaint. The court had earlier dismissed the complaint with leave to amend, and the parties reached the settlement while a second motion to dismiss was pending.The same order sharply reduced what the lawyers will be paid. Class counsel asked for 30% of the fund; the judge awarded 20%, or $9,550,000, and denied the lead plaintiff's request for a $10,000 award. There is nothing left to file: the claim deadline was June 25, 2026.
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Fewer Than Half the Claims Were Accepted
Verita, the settlement administrator, sent 160,167 notice packets and received 67,472 claims. It accepted 24,306 and rejected 43,166. The judge first questioned that rejection rate, then accepted the administrator's explanation: most rejected filings showed no loss under the plan of allocation, listed securities or trade dates outside the class period, or lacked supporting documents. About 94% of all claims came from third-party filers, including brokerages, custodians and claims-filing services, which the administrator said tend to submit every account that could conceivably qualify. According to the order, none of the rejected claimants challenged the denial.The accepted claims still cover most of the affected stock. They account for about 60 million shares, which the order puts at 75% of the damaged shares estimated by the plaintiffs' damages expert. Twenty investors opted out. The single objection came from a class member who inherited HEI shares; the court overruled it after she did not supply records showing the shares were originally bought during the class period, which the plan of allocation requires for inherited stock.
Why the Judge Cut the Fee
Judge Corley found that class counsel's request for 30% exceeded the Ninth Circuit's 25% benchmark without justification, and then went below the benchmark. The order says counsel continued to run the case as if two firms were co-lead counsel after the court had denied a request to appoint co-leads, and that the time records submitted did not support the hours claimed. The judge estimated that the $4.6 million lodestar counsel reported was more likely about $2.5 million for reasonable, non-duplicative work, and wrote that the billing records were "questionable at best and fraudulent at worst." The court said it would have cut the fee further had the recovery for the class not been so substantial.The court allowed $133,938.30 in litigation costs for court-appointed lead counsel Pomerantz LLP and declined to reimburse $43,297.37 in costs claimed by Levi & Korsinsky. Administration costs were capped at $500,000, the limit set at preliminary approval, even though Verita reported $681,026.85 in fees and expenses through September 30, 2026. The lead plaintiff's $10,000 request was denied because the Private Securities Litigation Reform Act allows class representatives to recover only reasonable costs and expenses, and the court found the request was effectively payment for time at an unsupported hourly rate.
What Happens Next
The parties must file a proposed judgment by November 6, 2026. The net fund will then be divided pro rata among accepted claimants according to each one's recognized loss, which turns on the timing of their HEI purchases and sales and the number of shares. If money remains after the first distribution, the administrator will try a second one, and the court has ordered class counsel to file a post-distribution accounting and post it on the settlement website. No payment date had been announced as of October 24, 2026.This case is separate from the litigation brought on behalf of people harmed by the August 2023 Maui wildfires. OpenClassActions.com covers the $135 million Maui fires class settlement on its own page.
Questions
Can I still file a claim in the Hawaiian Electric securities settlement?
No. The court's preliminary approval order set June 25, 2026 as the deadline to submit a claim form, and that date has passed. The settlement administrator, Verita, received 67,472 claims and accepted 24,306 of them.
How much will each approved claimant receive?
There is no flat amount. After the court-approved fees and costs, roughly $37.6 million remains before taxes, and it is divided pro rata according to each claimant's recognized loss under the plan of allocation, which depends on when HEI shares were bought and sold and how many. No per-share or per-claimant figure has been announced.
Why were most Hawaiian Electric claims rejected?
According to the administrator's declarations described in the final approval order, most of the 43,166 rejected claims showed no loss under the plan of allocation, included securities or dates outside the class period, or lacked documentation. About 94 percent of all claims came from third-party filers such as brokerages and claims-filing services, which tend to submit every account that might qualify. The order says none of the rejected claimants challenged the denial.
When will Hawaiian Electric settlement payments be sent?
No payment date had been announced as of October 24, 2026. The court ordered the parties to file a proposed judgment by November 6, 2026. Distribution follows the judgment and the time for any appeal. If money is left after the first distribution, the administrator will attempt a second one.
Is this the same as the Maui wildfire settlement?
No. This settlement covers investors who bought Hawaiian Electric Industries securities between February 28, 2019 and September 4, 2023. People who suffered losses in the August 2023 Maui wildfires are covered by separate litigation and settlements.
Sources
• Order re: motions for final approval and for award of attorneys' fees, Bhangal v. Hawaiian Electric Industries, Inc., No. 3:23-cv-04332-JSC (N.D. Cal. Oct. 23, 2026), Dkt. 150• Order granting preliminary approval, Dkt. 124 (claim, exclusion and objection deadlines of June 25, 2026)
• CourtListener docket for the case
• Official settlement website
OpenClassActions.com is a consumer news site, not a law firm, and is not affiliated with the court, the parties or the settlement administrator. This article is for informational purposes only. It is not legal advice.
