In re PG&E Corporation Securities Litigation

Labaton Keller Sucharow serves as court-appointed Lead Counsel representing the Lead Plaintiff Public Employees Retirement Association of New Mexico (PERA) in a securities class action involving PG&E Corporation and Pacific Gas and Electric Company (together with PG&E Corporation, PG&E), and certain related officers, directors, and underwriters (the Class Action).  The Class Action alleges that the Defendants made false and misleading statements to investors about PG&E’s progress and improvements in wildfire safety, and compliance with relevant regulations concerning wildfire safety, prior to the devastating Northern California wildfires in October 2017 (the North Bay Fires) and November 2018 (the Camp Fire).

The case is In re PG&E Corporation Securities Litigation, No. 18-cv-03509 (N.D. Cal.).  

The Class Action asserts class claims on behalf of stock, option, and note purchasers, including violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, as well as Sections 11 and 15 of the Securities Act of 1933.  It is pending in federal district court in San Jose, CA before Judge Edward J. Davila.

PG&E Bankruptcy Filing and Initial Stay

On January 29, 2019, PG&E filed jointly for bankruptcy protection, which had the effect of staying the Class Action as to PG&E.  The jointly administered bankruptcy actions are before Bankruptcy Judge Dennis Montali, Case Nos. 19-br-30088 and 19-br-30089, Bankr. N.D. Cal. (together, the PG&E Bankruptcy Proceedings).  On September 30, 2022, Judge Davila issued an order staying the securities class action against all Defendants pending the resolution of the PG&E Bankruptcy Proceedings.  PERA appealed the Stay Order to the Ninth Circuit.  On May 3, 2024, after the parties fully briefed and argued the appeal, the Ninth Circuit issued an order that vacated and remanded the Stay Order. See PERA v. Earley, No. 22-16711 (9th Cir. May 3, 2024).

Significant Victories in the PG&E Bankruptcy Proceedings

On September 12, 2023, Judge Montali granted PERA's Bankruptcy Rule 7023 motion, holding that class treatment of securities claims would be beneficial.

On January 30, 2024, Judge Montali appointed PERA as Lead Plaintiff and Labaton Keller Sucharow as Lead Counsel for securities claimants in the PG&E Bankruptcy Proceedings.

On September 18, 2024, Judge Montali largely overruled PG&E's sufficiency objection to PERA's proof of claim.  Since then, PERA has engaged in substantial discovery efforts.‍

District Court Proceedings

Following PERA's successful appeal of the Stay Order, Judge Davila ordered renewed briefing on Defendants’ motion to dismiss Plaintiffs’ Third Amended Consolidated Class Action Complaint for Violation of the federal securities laws (TAC).  On September 30, 2025, Judge Davila issued an order granting Defendants’ renewed motions to dismiss the TAC with leave to file an amended complaint.  On November 14, 2025, Plaintiffs filed a Fourth Amended Consolidated Class Action Complaint for Violation of the federal securities laws that contained additional allegations based on information made public after the filing of the TAC and certain confidential documents produced by PG&E in the PG&E Bankruptcy Proceedings.‍

Proposed Settlement

Following extensive mediation efforts and negotiations, on December 31, 2025, the Parties reached an agreement to settle the claims of the class for $100 million.   On January 10, 2026, Lead Plaintiff filed a motion for preliminary approval of the proposed settlement with the District Court.  The preliminary approval hearing on Lead Plaintiff’s motion is currently scheduled for February 26, 2026.  Additional information will be available after the hearing.

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