Click here to read more about our Riverside County Animal Services Case
Free Consultation (760) 777-7777 Phone
Search
Close Icons

No thumbnail set.

PG&E Exits Bankruptcy With Wildfire Settlements Finalized

Jul 31,2020

Pacific Gas and Electric Co. (PG&E) has officially emerged from Chapter 11 bankruptcy. The process required overcoming multiple hurdles tied to the company’s compensation for victims of wildfires caused by PG&E’s equipment, and reimbursement to disaster support agencies.

PG&E Pleads Guilty to Involuntary Manslaughter

Leading up to the approval of PG&E’s restructuring plan, the company pled guilty to 84 counts of involuntary manslaughter related to 80 deaths from the 2018 Camp Fire, which also burned over 150,000 acres and nearly 19,000 structures. As part of the plea bargain, PG&E is required to pay $3.5 million in fines. These numbers may be troubling to some, as the $3.5 million total equates to about $43,000 in penalties per person killed as a result of PG&E’s criminal recklessness.

Prior to approval, terms of the plea deal were modified because opponents – and the Judge who oversaw the proceedings – expressed concerns that PG&E might attempt to pay the penalties from a fire victim trust. The resulting deal ensured fire victims would not be burdened with paying for PG&E’s criminal liability.

FEMA Could Receive $1 Billion in Reimbursement

FEMA and CalOES sought $4 billion in reimbursement for providing support to victims of wildfires in 2015, 2017, and 2018, which were caused by PG&E equipment. However, FEMA agreed to a settlement of $1 billion and CalOES withdrew their claim. Though the settlement with FEMA is to be paid from a $13.5 billion victim’s settlement fund, that money will only be paid out if funds are remaining after PG&E compensates approximately 70,000 wildfire victims.

Collapse Avoided in the Final Hours

PG&E’s proposed $13.5 billion victim’s fund was to be comprised of 50% of PG&E stock, however, PG&E’s stock price had fallen dramatically since the proposal was developed. As a result, victims and their representatives threatened to withdraw support for the proposal, which would have jeopardized PG&E’s restructuring plan. In response, PG&E agreed to increase the volume of stock provided, paving the way for approval of the restructuring plan

Free Consultation

    Recent Posts
    Popular Tags
    Have you read our latest NEWSLETTER?
    No Cost to You Until We Win Your Case
    Get a free consultation
    Subscribe to WCLG’s e-mail list

      Our Offices
      Rancho Mirage (Main office)
      71861 Highway 111
      Rancho Mirage, CA 92270
      (760) 777-7777
      Get Directions
      Victorville
      12138 Industrial Boulevard,
      Suite 230
      Victorville, CA 92395
      (760) 777-7777
      Get Directions
      El Centro
      1503 N Imperial Ave #202
      El Centro, CA 92243
      (760) 777-7777
      Get Directions
      Banning
      2781 W Ramsey St
      STE 6
      Banning CA 92220
      Get Directions
      Palm Springs
      477 S Palm Canyon
      STE 6
      Palm Springs, CA 92262
      Get Directions
      10 Top Attorneys
      Toll FREE
      1-800-DESERT1
      1-800-337-3781
      Top 100 Personal Injury Communities We Serve

      Walter Clark Legal Group helps injured people and their families in the Southern California desert communities of:

      Fax(760) 862-1121
      Contact Us

      (*) Required fields

        Charitable Contribution Request Read more
        © 2025. Walter Clark Legal Group. All Rights Reserved.
        Privacy Policy Disclaimers

        Walter Clark Legal Group

        Walter Clark Legal Group
        N/a
        Rancho Mirage (Main office)
        Walter Clark Legal Group 71861 Highway 111 Rancho Mirage,,  CA  92270.
        Get Directions
        (760) 777-7777
        Victorville
        Walter Clark Legal Group 12138 Industrial Boulevard, Suite 230, Victorville,,  CA  92395.
        Get Directions
        (760) 777-7777
        El Centro
        Walter Clark Legal Group 1503 N Imperial Ave #202 El Centro,,  CA  92243.
        Get Directions
        (760) 777-7777
        Banning
        Walter Clark Legal Group 2781 W Ramsey St STE 6, Banning,  CA  92220.
        Get Directions
        Palm Springs
        Walter Clark Legal Group 477 S Palm Canyon STE 6, Palm Springs,,  CA  92262.
        Get Directions