Lineage Seeks More Than $1 Billion, Blames Solar Companies for Boyle Heights Warehouse Fire

Lineage is seeking more than $1 billion in damages from three companies it blames for the massive June fire that destroyed its Boyle Heights cold-storage facility, alleging the rooftop solar system was energized despite unresolved safety concerns in the days before the blaze.

The lawsuit, filed in Los Angeles County Superior Court against Altus Power Inc., its subsidiary Los Palos Street Operating LLC and contractor Pearce Services LLC, alleges negligence and reckless conduct caused the June 17 fire. The blaze burned for eight days at the roughly 500,000-square-foot facility, blanketing Boyle Heights and surrounding areas with smoke before millions of pounds of spoiled food left behind a foul odor that lingered for weeks.

Lineage alleges problems with the rooftop solar array had been building before the fire. According to the company, more than 200 connector failures had been identified across the system by May, including in the section where the June fire later began.

On June 11, Lineage says it warned Altus in writing not to re-energize the solar panels until critical safety testing was completed. The lawsuit alleges Altus and Pearce disregarded that request and powered the system while work remained underway. Lineage says the fire began six days later while Pearce personnel were working on the energized array.

The company also points to an earlier fire involving the same solar system in August 2024. After that smaller rooftop fire, Lineage says it called for additional safety measures before the array could be placed back into service and Altus hired Pearce to reconfigure portions of the system.

“From our perspective, Altus and Pearce are the solar experts,” Lineage Chief Executive Greg Lehmkuhl said. “They own the array, but because of clearly shoddy work from the beginning, there was a fire two years ago.”

Lineage’s complaint alleges negligence, negligent supervision, health and safety code violations and breach of contract. The company is seeking to recover losses tied to the destruction of the facility, cleanup and remediation costs, reputational damage and mounting litigation stemming from the fire.

“The record is clear: this was a solar fire,” Lehmkuhl said. “Cold storage is not a risk to communities. It is an essential service that lowers food costs, expands food access and creates jobs.”

Altus and Los Palos Street Operating have pushed back against Lineage’s account and accused the warehouse operator of trying to shift responsibility.

“Lineage’s statement is riddled with misinformation in a blatant attempt to deflect blame for their role in this matter, including any damage caused by the release of substances from the warehouse, not the solar panel,” a spokesperson for Los Palos Street Operating said.

The company also argued that Lineage, as the tenant and operator of the facility, was responsible for overseeing cleanup, debris removal and remediation at the site. Altus has said it plans to contest the claims in court.

Pearce has separately denied causing the fire and said the investigation into its cause, origin and spread remains ongoing. The contractor said conclusions about responsibility are premature and that it is cooperating with investigators.

The lawsuit adds another legal front to the fallout from the fire. Lineage has faced lawsuits from residents and businesses over the smoke, odors and other conditions that followed the blaze. Residents reported swarms of flies and rats around the spoiled food, while others complained of nausea and irritation to their eyes and throats.

City officials initially estimated that roughly 85 million pounds of frozen food had been stored inside the facility when the fire broke out. Lineage later reported removing more than 89 million pounds of food waste during a cleanup that lasted more than two months.

The company has estimated that cleanup and remediation alone will cost more than $100 million. Lineage says its broader losses, including damage to the facility and exposure to other lawsuits tied to the fire, will push the amount it seeks from the solar companies above $1 billion.

The official cause of the fire remains under investigation. Lineage maintains the rooftop solar system and the defendants’ handling of it caused the blaze, while Altus and Pearce deny responsibility. The allegations will now move through Los Angeles County Superior Court.