PG&E Expected To Plead Guilty For 2018 Wildfire Deaths Today

PG&E Corporation (NYSE: PCG) is planning to plead guilty to 84 felony counts of involuntary manslaughter in the 2018 California wildfire case on Tuesday, the Associated Press reported.

What Happened

None of the executives at the electricity and natural gas provider have been charged, and the company is likely to face a maximum fine of $3.5 million, along with $500,000 to be paid to cover County's costs of the criminal investigation, the Associated Press noted.

PG&E had reached a plea agreement with the prosecution in March, as reported by Associated Press at the time.

The company had previously agreed to pay $13.5 million to the wildfire victims, in cash and shares, as part of its plan to escape bankruptcy.

An estimated 70,000 victims will end up controlling 22.19% of the PG&E stock once the bankruptcy is settled, the company said in a filing with the Securities and Exchange Commission last week.

What's Next

Butte County Superior Court Judge Michael Deems is presiding over the case and is expected to formally sentence PG&E on Thursday or Friday, according to the Associated Press.

A federal judge is expected to rule on the company's bankruptcy plan by the end of this month.

PG&E Price Action

PG&E shares closed nearly 0.4% lower at $10.98 on Monday. The shares traded 2% higher in the after-hours session at $11.20.

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