California PG&E wildfire victims susceptible to financial sucker punch: Judge Napolitano
California wildfire victims suing utility company PG&E over alleged negligence may be on the hook for damages tied to the deadliest wildfire in the state’s history, according to Fox News senior judicial analyst Judge Andrew Napolitano.
PG&E shares were pounded after the utility said its insurance may not cover the possible losses.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PCG | PG&E CORP. | 17.07 | +0.07 | +0.41% |
Judge Napolitano said although PG&E faces “massive liability,” if they run out of money, California will be held responsible.
“Because they are a public utility, they are backed up by the state,” Judge Napolitano said to FOX Business’ Stuart Varney on Thursday. “So if they exhaust all of their reserves and even have to sell real estate, who comes in and pays the liability for human life lost and property destroyed? The state.”
Napolitano added that even though the “California government has $6 billion in cash in the bank” it would limit exactly how much they pay out, and therefore, a lot of people will be hurt financially and will very likely see electricity rates in California skyrocket.
“A lot of innocent people will not be made whole because the legislator of California has decided that the risk should not be spread amongst the taxpayers,” he said.