Abraham, Fruchter & Twersky, LLP is currently serving as lead counsel in In re Terraform Global, Inc., No. 16-cv-07981-PKC (S.D.N.Y.), a class action on behalf of purchasers of Terraform Global, Inc. common stock in Terraform Global’s July 2015 Initial Public Offering. This class action is part of a large multi-district litigation of sixteen cases concerning TerraForm Global, TerraForm Global’s parent company, SunEdison, Inc. and another subsidiary of SunEdison, TerraForm Power.
In the TerraForm Global class action, AF&T seeks to recover for investors who bought stock in TerraForm Global’s IPO pursuant to materially false and misleading offering documents. Specifically, the offering documents touted TerraForm Global as a company that would rapidly expand upon the strength of SunEdison, which would serve as its sponsor in feeding it renewable energy projects. The offering documents stated that these projects would serve as a steady stream of dividend payments to investors. However, by the time of the IPO, and undisclosed to investors, SunEdison was experiencing massive liquidity and financial setbacks that meant it could not successfully launch TerraForm Global’s business model. Within two months of the IPO, SunEdison was forced to admit that it did not expect to sell any projects at all to TerraForm Global through 2016. Over the remainder of 2015 and into the spring of 2016, SunEdison continued its downward spiral, leading it to file for bankruptcy in April 2016.
AF&T is aggressively pursuing a recovery for class members based on allegations of glaring red flags prior to the IPO that make it clear that TerraForm Global’s officers and directors and the underwriters in the IPO failed to conduct any reasonable due diligence prior to marketing the IPO to investors. Additionally, AF&T is investigating potential outright intentional fraud by certain officers and directors of SunEdison and TerraForm Global in statements made to the public concerning SunEdison’s liquidity and financial position at or about the time of the TerraForm Global IPO. Overall, AF&T is seeking hundreds of millions of dollars in damages for TerraForm Global investors.