Thompson Introduces Bill to Ensure Recipients of PG&E Fire Victim Trust Don't Have to Repay Stock Sale Profits
Napa, CA – Today Rep. Mike Thompson (CA-05) announced the introduction of a bill to ensure survivors of the Butte, North Bay and Camp Fires who are set to receive a settlement through the PG&E Fire Victim Trust don’t have their settlement payments reduced by Securities and Exchange Act requirements related to stock sales. A statement from Thompson is below.
“Fire survivors deserve every measure of support from the Federal government as they work to rebuild. That includes ensuring they aren’t on the hook to pay back funding received under the Fire Victim Trust because PG&E stock is sold. That’s why today I am proud to introduce this bipartisan legislation to take care of our fire survivors and make sure that money isn’t clawed back from them. I will continue working to ensure our community has every Federal dollar and resource as we recover.”
After the 2015 Butte Fire, the 2017 North Bay Fires and the 2018 Camp Fire, PG&E established a Fire Victim Trust to compensate fire survivors. That trust was funded through shares of PG&E stock which needed to be monetized to benefit the recipients. Legal experts are concerned that monetization could trigger Section 16 of the Securities and Exchange Act, then requiring recipients to pay back those profits to PG&E, the opposite of the intended consequences. Thompson’s legislation would clarify that Section 16 does not apply in this case, ensuring recipients retain their compensation. You can click here to read text of the bill.