SEATTLE – National investor-rights law firm Hagens Berman Sobol Shapiro LLP today announced that Pacific Gas & Electric Company (“PG&E”) has been indicted for 12 federal criminal counts of safety violations of the Natural Gas Pipeline Safety Act and gross negligence following a gas pipeline explosion in 2010 that leveled a community in San Bruno, killing eight people.

The indictment was handed down on April 2, 2014, by U.S. attorney for the Northern District of California, Melinda Haag.

In 2010, Hagens Berman filed a shareholder derivative action against the officers and directors of PG&E, alleging that the officers and directors intentionally or through reckless ignorance breached their fiduciary duties by failing to take action to address safety issues in the company’s gas transmission pipelines. PG&E is the primary operating subsidiary of PG&E Corporation.

“This indictment underscores the allegations made in our 2010 case against PG&E and is in line with the complaint’s charges that the companies systematically failed to properly maintain their gas transmission lines, resulting in the deadly explosion,” said Steve Berman, managing partner of Hagens Berman. “Hagens Berman is continuing to vigorously pursue this case in light of this action.”

The suit alleges that, for decades, the defendants ignored safety violations, diverted funds earmarked for pipeline replacement projects and repeatedly cut budgets needed to safely maintain PG&E’s natural gas transmission and distribution lines – all of which ultimately culminated in a Sept. 9, 2010, explosion in San Bruno, Calif. that killed eight people and caused dozens of injuries. According to the complaint, between 2004 and 2009, PG&E received more “probable violation” safety citations than all of the other utilities in the state combined, despite operating only 42 percent of the state’s gas pipelines. Plaintiffs allege that defendants’ behavior also caused substantial economic losses for the companies, for which Hagens Berman seeks recovery on PG&E’s behalf.

The case is currently pending in superior court in San Mateo where Hagens Berman was appointed co-lead counsel with Frank Pitre of Cotchett, Pitre & McCarthy, LLP.

Hagens Berman’s suit asks the court to order the defendants to compensate the companies for financial losses as well as return their salaries during the time period in which the alleged breach of fiduciary duty took place.

Long term shareholders, who have held and continue to hold PG&E Corporation stock since before Sept. 9, 2010 may contact Reed R. Kathrein for more information by emailing [email protected].

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About Hagens Berman
Hagens Berman Sobol Shapiro LLP is a consumer-rights class-action law firm with offices in nine cities. The firm has been named to the National Law Journal’s Plaintiffs’ Hot List seven times. More about the law firm and its successes can be found at www.hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

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Ashley Klann
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