A federal judge in California has granted preliminary approval to a $100 million settlement resolving securities fraud claims against PG&E Corporation tied to the deadly 2017 and 2018 wildfires. Judge Edward J. Davila of the U.S. District Court for the Northern District of California held a hearing on February 26-27, 2026, and indicated he would approve the deal, with a written order to follow. The settlement, reached on December 31, 2025, after extensive mediation, resolves allegations that PG&E misled investors about its wildfire safety efforts before the October 2017 North Bay Fires and the November 2018 Camp Fire — two disasters that collectively killed dozens of people and destroyed thousands of structures.
The approval did not come without pushback. Nearly 700 members of the proposed class urged the judge to reject the settlement, calling it a “backdoor deal” that would undermine the broader claims process. A separate group of investors, represented by Rolnick Kramer Sadighi LLP, argued the deal conflicts with PG&E’s bankruptcy reorganization plan. Judge Davila acknowledged those concerns but signaled that the objecting investors would get their chance to be heard at the final approval stage.
Table of Contents
- What Does the $100M PG&E Securities Settlement Actually Cover?
- Who Is Eligible to File a Claim in the PG&E Investor Settlement?
- Why Nearly 700 Class Members Opposed the Settlement
- How to File a Claim and Protect Your Rights
- The Bankruptcy Complication and What It Means for Claimants
- What the PG&E Case Reveals About Wildfire-Related Securities Litigation
- What Happens Next in the PG&E Securities Settlement
- Frequently Asked Questions
What Does the $100M PG&E Securities Settlement Actually Cover?
The case, formally titled *In re PG&E Corporation Securities Litigation*, Case No. 5:18-cv-03509, centers on 19 allegedly false or misleading statements PG&E and its officers, directors, and underwriters made to investors. Specifically, the plaintiffs allege PG&E painted a rosy picture of its progress on wildfire safety compliance — statements that proved catastrophically wrong when the North Bay Fires broke out in October 2017 and the Camp Fire devastated Paradise, California, in November 2018. The class period for Exchange Act claims runs from April 29, 2015, through November 15, 2018.
The lead plaintiff in the case is the Public Employees Retirement Association of New Mexico (PERA), a large institutional investor that held PG&E securities during the class period. Lead counsel is Labaton Keller Sucharow LLP, a firm that regularly handles securities class actions of this scale. For context, $100 million is a significant recovery in securities litigation — most securities class actions settle for far less — but it is worth noting that PG&E’s overall wildfire liabilities exceeded $30 billion, so the securities component is a relatively narrow slice of the total fallout. PG&E denied any wrongdoing as part of the agreement, which is standard in these settlements and does not mean the claims lacked merit.
Who Is Eligible to File a Claim in the PG&E Investor Settlement?
If you purchased or acquired PG&E Corporation or Pacific Gas and Electric Company securities between April 29, 2015, and November 15, 2018 — the defined class period — you may be eligible to participate. This includes common stock and potentially other securities issued by PG&E or its subsidiaries during that window. The official settlement website at www.pgesecuritiessettlement.com will have the claim form and detailed instructions once the process moves forward.
However, eligibility alone does not guarantee a payout. The amount any individual class member receives will depend on several factors, including when you bought and sold your shares, how many shares were involved, and the total number of valid claims filed. Investors who bought shares early in the class period and held them through the November 2018 Camp Fire revelation would likely have stronger claims than those who traded in and out. If you already released claims against PG&E through the company’s bankruptcy proceedings, your ability to participate in this settlement could be affected — and that is precisely the issue the objecting investors have raised.
Why Nearly 700 Class Members Opposed the Settlement
The opposition to this deal is unusually intense for a securities class action that has reached the preliminary approval stage. Nearly 700 members of the proposed class submitted objections urging Judge Davila to reject the settlement, characterizing it as a “backdoor deal” that would undermine the existing claims process. That level of organized opposition is rare and suggests genuine disagreement within the investor community about whether $100 million is adequate or whether the settlement’s terms create problems for investors who have claims through other channels.
A key group of opponents, represented by Rolnick Kramer Sadighi LLP, focused their argument on how the settlement interacts with PG&E’s bankruptcy reorganization plan. PG&E emerged from Chapter 11 bankruptcy in 2020 after establishing a $13.5 billion trust for wildfire victims. The concern among these objecting investors is that the securities settlement could interfere with or dilute recoveries that were supposed to flow through the bankruptcy plan. Judge Davila took these concerns seriously enough to indicate that the objectors will likely get consideration of their issues at the final approval hearing, which has yet to be scheduled.
How to File a Claim and Protect Your Rights
For investors who want to participate, the first step is to visit the official settlement website at www.pgesecuritiessettlement.com and monitor it for updates. Since the court has only granted preliminary approval, the claim filing deadline has not yet been set. A formal notice will be sent to class members once Judge Davila issues his written order and the notification process begins. When the claim form becomes available, you will need documentation of your PG&E securities transactions during the class period — brokerage statements, trade confirmations, or other records showing purchase and sale dates and prices.
The tradeoff investors face is a familiar one in class action litigation: accept a certain recovery now or hold out for potentially more through other legal channels. For most retail investors who held PG&E stock during the class period, filing a claim in this settlement is likely the most practical path to any recovery. Pursuing individual securities fraud claims would be prohibitively expensive for all but the largest institutional holders. On the other hand, investors who believe their claims are worth substantially more than what a pro-rata share of $100 million would yield — particularly those with large positions — may want to consult with independent counsel about whether to opt out and pursue separate litigation.
The Bankruptcy Complication and What It Means for Claimants
The elephant in the room is PG&E’s 2019 bankruptcy filing and subsequent reorganization. When PG&E emerged from Chapter 11 in July 2020, the reorganization plan established specific mechanisms for handling various categories of claims, including those from wildfire victims, insurers, and public entities. The objecting investors argue that the securities settlement essentially creates a parallel claims process that was not contemplated by the bankruptcy plan, potentially shortchanging investors who expected to recover through the reorganized company’s improved financial position. This is not a theoretical concern.
Bankruptcy plans are carefully negotiated agreements that balance the interests of competing creditor groups. If a post-bankruptcy settlement effectively redirects $100 million away from the reorganized entity to one group of claimants, other stakeholders may argue they are being harmed. Judge Davila’s willingness to let the objectors present their case at final approval suggests the court recognizes this tension. For class members, the practical takeaway is that preliminary approval does not guarantee the deal will survive — the final approval hearing could result in modifications to the settlement terms or, in a less likely scenario, rejection of the deal altogether.
What the PG&E Case Reveals About Wildfire-Related Securities Litigation
The PG&E securities case is part of a broader wave of litigation exploring whether utility companies adequately disclosed wildfire risks to investors. California’s largest utilities have faced increasing scrutiny over whether their infrastructure maintenance and vegetation management practices were sufficient, and whether they told shareholders the truth about those efforts.
The PG&E case is notable because the alleged misrepresentations were not vague — the complaint identifies 19 specific statements that plaintiffs say were false or misleading. For investors in other California utilities or companies with significant wildfire exposure, this case is a reminder that corporate statements about safety compliance are taken seriously by the courts. If a company tells investors it is meeting regulatory requirements and it is not, that gap between representation and reality is exactly what securities fraud law is designed to address.
What Happens Next in the PG&E Securities Settlement
The immediate next step is Judge Davila’s written order formally granting preliminary approval. Once that order is entered, a notice plan will be implemented to inform class members of their rights, the claims process, and key deadlines including the claim filing deadline and the opt-out deadline. A final approval hearing will then be scheduled, at which the court will consider any remaining objections — including those from the nearly 700 class members and the Rolnick Kramer Sadighi group — before deciding whether to grant final approval.
Given the scale of the opposition, the final approval hearing will be closely watched. If the deal survives, distribution of the $100 million fund will follow after deduction of attorneys’ fees and litigation expenses. If you held PG&E securities during the class period, now is the time to locate your transaction records and keep an eye on www.pgesecuritiessettlement.com for claim filing instructions.
Frequently Asked Questions
Who is eligible for the PG&E securities settlement?
Investors who purchased or acquired PG&E Corporation or Pacific Gas and Electric Company securities during the class period of April 29, 2015, through November 15, 2018, may be eligible.
How much will each class member receive?
Individual payouts have not been determined. The amount will depend on factors including the size and timing of your transactions and the total number of valid claims filed against the $100 million fund.
Is the settlement finalized?
No. Judge Davila granted preliminary approval in late February 2026, but a final approval hearing must still take place. Nearly 700 class members have raised objections that the court will consider before making a final decision.
Where do I file a claim?
The official settlement website is www.pgesecuritiessettlement.com. The claim form and filing deadline will be posted there once the court issues its formal written order.
Does PG&E’s bankruptcy affect my ability to claim?
It might. Some objecting investors argue the settlement conflicts with PG&E’s bankruptcy reorganization plan. The court has indicated it will address this issue at the final approval hearing. If you released claims through the bankruptcy, consult with an attorney about your eligibility.
What if I already sold my PG&E shares?
You may still be eligible if you held the securities during the class period and suffered a loss. What matters is the timing of your purchases and sales relative to the alleged misrepresentations, not whether you currently hold the stock.