22 exofficials of PG&E sued by fire victims to boost payout
The trust responsible for paying settlements to tens of thousands of Northern California wildfire victims is suing 22 former Pacific Gas and Electric Co. executives and board members of its parent company.
It’s an effort to secure more money for people affected by two of California’s worst disasters: the historically deadly 2018 Camp Fire in Butte County and the 2017 fires that burned in the North Bay’s Wine Country. Both blazes were caused by PG&E power lines, and they killed more than 100 people and incinerated thousands of homes.
PG&E settled with fire victims as part of its exit from bankruptcy last year. But the trust established to pay victims an estimated $13.5 billion retained the right to pursue litigation against former directors and top executives.
Trustee John Trotter, a retired state appeals
court judge who oversees the victims’ fund, has taken advantage of that and filed suit Wednesday in San Francisco Superior Court against 22 PG&E exleaders.
Trotter’s suit alleges that the defendants breached fiduciary duties, namely by failing to implement a fire safety power shutoff program early enough to prevent the 2017 fires and neglecting to properly maintain the highvoltage equipment that started the Camp Fire.
“Two very different things went wrong here, and it starts at the top,” said attorney Frank Pitre, whose firm is leading Trotter’s lawsuit. Pitre has sued PG&E on behalf of fire victims in the past, and he was heavily involved in the company’s bankruptcy proceedings.
Defendants in the suit include former chief executives Tony Earley and Geisha Williams, former board chairman Richard Kelly and former chief financial officer Jason Wells, among others. Attorneys for the defendants could not be reached for comment.
Though PG&E is not a defendant, company spokeswoman Lynsey Paulo said in a statement that the company was aware of the lawsuit. Paulo reiterated PG&E’s intent to “honor victims of the Camp Fire and previous fires” by reducing fire risk, and she said the company has contributed the “vast majority” of the $13.5 billion victims’ settlement already.
“We remain focused on reducing wildfire risk across our service area and making our electric system more resilient to the climatedriven challenges we all face in California,” she said.
PG&E funded its $13.5 billion settlement with victims through a mix of cash and stock that the trust can sell off over time. But Trotter acknowledged in a recent letter to victims that the trust was “more than $1 billion short” of its intended value because of the stock’s subpar performance. He also said the trust had a “careful ‘selldown plan,’ ” so it could sell shares when they’re worth more.
Pitre estimated that the suit against former company leaders could secure $200 million to $400 million or more to boost the funds available for victims.
“This is not motivated because of any fear or any anxiety over the value of the trust being $13.5 billion,” he said. “It is being done to try to enhance that value.”
Apart from its bankruptcy and related settlement with fire victims, PG&E also pleaded guilty to 84 felony counts of involuntary manslaughter over its role in the Camp Fire. The company was already on probation because of earlier convictions arising from the 2010 San Bruno gas pipeline explosion.
PG&E is still under investigation for possibly causing the 2020 Zogg Fire, which killed four and destroyed more than 200 buildings west of Redding.