PG&E Shareholder Hind Bou-Salman Lawsuit: Make Execs Pay San Bruno Fire

Zennie Abraham / Zennie62
Zennie Abraham / Zennie62

San Bruno Fire

San Bruno Fire

A PG&E shareholder named Hind Bou-Salman filed a lawsuit Monday against the utility’s management claiming that they took money for pipeline safety and used it for other corporate uses, including giving themselves large bonuses.

The PG&E shareholder lawsuit, filed in San Mateo County Superior Court, says that PG&E’s executives created a “profits over safety” culture which catalyzed tragedies like the 2010 San Bruno Fire that killed eight people and destroyed 38 homes.

PG&E officials reported that the utility has settled nearly 500 confidential claims totaling more than $565 million related to the San Bruno explosion. But the California Public Utilities Commission is mulling over a fine against PG&E that could exceed $2 billion.

“Had PG&E’s management required that corporate funds be used for maintenance and repairs when it should have, the cost to PG&E would have been minimal in comparison to the significant financial injury the company now faces and will face in the future,” the Hind Bou-Salman lawsuit reads.

Hind Bou-Salman, a Millbrae, California resident and PG&E stockholder for 23 years, want the executive bonuses given back, and changes to the company’s management structure and culture.

Mark Molumphy, the attorney representing Hind Bou-Salman, said “PG&E and its shareholders are bearing the financial brunt of decisions made by the company’s executives.”

“The complaint today alleges that PG&E’s executives, not its shareholders, should be held responsible for fostering a corporate culture that minimized the need to address safety,” Molumphy said.

PG&E spokeswoman Brittany Chord said, “We are carefully reviewing the allegations and we’ll respond according to the process set by the court.” Chord said, “We remain committed to providing our communities with a safe and reliable gas system.”

Stay tuned.

About the Author

Zennie Abraham
Zennie Abraham | Zennie Abraham or "Zennie62" is the founder of Zennie62Media which consists of zennie62blog.com and a multimedia blog news aggregator and video network, and 78-blog network, with social media and content development services and consulting. Zennie is a pioneer video blogger, YouTube Partner, social media practitioner, game developer, and pundit. Note: news aggregator content does not reflect the personal views of Mr. Abraham.

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