Update: Edison Shares Fall After Muddy Waters Alleges Safety Failures Before Eaton Fire

11:37 AM EDT, 10/14/2026 (MT Newswires) -- (Updates with Edison International's comments in the fourth paragraph.) Edison International (EIX) shares fell 1.9% in Tuesday afternoon trading after short-seller Muddy Waters alleged that its subsidiary, Southern California Edison, failed to adequately address fire risks before the Eaton Fire. The report claims Southern California Edison failed to consider shutting down four 220-kilovolt transmission circuits running through Eaton Canyon on Jan. 7, 2025, despite forecasts of extreme winds. It cites Los Angeles County fire investigators' conclusion that the transmission corridor was the source of the fire. Muddy Waters said the utility could face liabilities of about $4.3 billion if found imprudent, potentially rising to about $20 billion if regulators determine it acted with conscious or willful disregard for public safety. "We remain confident we will be able to show we acted as a reasonable utility would in maintaining the system in a safe manner," an Edison International spokesperson told MT Newswires. Price: 54.16, Change: -1.33, Percent Change: -2.39