PG&E Under Investigation for Potential Breaches of Fiduciary Duties
Shareholder and consumer rights law firm Schubert Jonckheer & Kolbe LLP is investigating whether certain officers and directors of PG&E Corporation (NYSE: PCG) breached their fiduciary duties by repeatedly and systemically failing to adequately oversee fire risks caused by PG&E’s power lines, transmission towers, and equipment.
The now-contained Butte County “Camp Fire” is the deadliest and most destructive fire in California history, having ravaged over 240 square miles, destroyed more than 18,000 structures, and claimed at least 88 lives. On November 13, 2018, PG&E disclosed in a regulatory filing with the Securities and Exchange Commission that an outage and damage to a transmission tower were reported in the area shortly before the fire began on November 8, 2018. The cause of the Camp Fire remains under investigation. The Camp Fire occurred approximately one year after the series of disastrous October 2017 North Bay Fires claimed 44 lives, destroyed nearly 9,000 buildings, and burned almost 250,000 acres. The California Department of Forestry and Fire Protection later determined that PG&E equipment was the source of all of the 17 major North Bay Fires it had investigated and that there was evidence that PG&E violated state law in 11 of those instances. The North Bay Fires caused more than $17 billion in estimated damages.
The Camp Fire has devastated California and potentially exposed PG&E to a wide range of governmental investigations, regulatory proceedings, lawsuits, and severe harm. Since the Camp Fire began, PG&E’s stock price has tumbled over $20 per share, closing at $26.10 on December 3, 2018.
PG&E shareholders have the option to pursue a shareholder-derivative action through which they may hold insider wrongdoers accountable for their actions, prevent future misconduct, and return long-term value back to the company.
If you currently own PG&E stock and wish to obtain additional information about our investigation and your legal rights, please complete the form below for a free legal consultation.