PG&E Investors’ Wildfire Case Halt Must Be Reconsidered

The Ninth Circuit on Friday asked a lower court to reassess halting a securities suit over wildfire readiness against PG&E Corp. officers, directors, and underwriters during the utility’s bankruptcy proceedings.

The trial court gave insufficient reasons for imposing a pause, or stay, in claims against the approximately 40 non-debtors, the US Court of Appeals for the Ninth Circuit said.

Morgan Stanley & Co., Citigroup Global Markets Inc., and J.P. Morgan Securities LLC are among the underwriters in the suit, which stems from California wildfires in 2017 and 2018.

The investors alleged that PG&E, its officers and directors, and its underwriters ...