California-based utility PG&E Corp. (PCG) - Get Report will be replaced by S&P midcap constituent Teleflex Inc. (TFX) - Get Report in the S&P 500 on Friday, as PG&E has said it intends to file for bankruptcy amid lawsuits stemming from its role in the California wildfires in 2017 and 2018.
Teleflex shares were down 2% in trading while PG&E shares fell 3.2%.
PG&E announced Monday that it was preparing to file for Chapter 11 protection before the end of the month as it faces more than $30 billion in potential liability costs. That decision makes the company ineligible for continued inclusion on the S&P 500.
More than 750 civil suits have been filed by thousands of homeowners and insurers over damage from the wildfires that have been blamed on the company's power lines.
Investigators in the state have determined that PG&E's power lines sparked 18 wildfires in October 2017 which ended up burning about 200,000 acres and killed more than 20 people. Fires started by the company's power lines also killed 86 people in November's Camp Fire, making it the deadliest fire in state history.
Teleflex is a Wayne, Penn.-based medical device manufacturer focused on common diagnostic and therapeutic procedures, including catheters and devices that measure blood pressure.
Teflex shares are down about 3% over the past 12 months.