Edison Stock Drops As Legal Pressure Over Eaton Fire Mounts, Video Evidence Surfaces: Retail's Divided

Edison International (EIX) stock declined nearly 2% in mid-day trading Monday following a report from Bloomberg Law detailing a lawsuit alleging the company’s Southern California utility equipment sparked the deadly Eaton fire.

According to the report, Edison’s Southern California utility equipment may have created a powerful electric arc above Altadena that ignited the deadly Eaton fire. 

Supporting the allegation, the law firm released video footage reportedly captured at a nearby gas station. 

The footage allegedly shows electricity arcing moments before a fire erupts in the same location about 10 minutes later.

“It’s premature for anyone to comment on footage until experts complete a review,” Southern California Edison spokesperson Kathleen Dunleavy told Bloomberg Law. 

“We reached out to authorities last evening to ensure they had the footage that was shared with us because it’s crucial they have evidence that would aid this investigation,” she added.

Last week, a Los Angeles judge partially granted a request from the law firm Edelson PC to preserve power infrastructure near the fire’s origin and produce data from four circuits closest to the affected area. 

Edison's attorneys argued that without this order, evidence critical to determining the cause of the electric arc could have been destroyed. Electric arcs, which occur when current jumps between conductors, are often caused by damaged or frayed wires.

According to the report, at least 20 lawsuits have been filed in Los Angeles state court against Southern California Edison.

Retail sentiment on Stocktwits around Edison’s stock remained in the ‘neutral’ zone as chatter dipped to ‘low’ levels from ‘normal’ a day ago. 

However, retail attention toward the stock has surged since the L.A. wildfires broke out on Jan. 7, with followers on the platform increasing by 33% over the last month.

Edison’s shares have dropped more than 27% over the past 30 days and currently trade just 4% above their 52-week low.

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