NEW YORK, Nov. 04, 2015 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against TerraForm Global, Inc. (“TerraForm Global” or the “Company”) (NASDAQ: GLBL ) and certain of its officers. The class action, filed in United States District Court, Northern District of California, is on behalf of a class consisting of all persons or entities who purchased TerraForm Global securities pursuant or traceable to the Company’s Initial Public Offering (“IPO”) and Registration Statement on July 31, 2015. This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Act of 1933 (the “Act”).
If you are a shareholder who purchased TerraForm Global securities during the Class Period, you have until December 28, 2015 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com . To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
TerraForm Global owns and operates contracted “clean power” generation assets in emerging market countries. Prior to its IPO, TerraForm Global was known as “SunEdison Emerging Markets Co.” The bulk of TerraForm Global’s business is acquiring power generation assets that produce long-term contracted cash flows, primarily by serving utility and commercial customers from SunEdison. TerraForm Global's business has a focus in Brazil, which represents about 24% of the Company's current energy generation capacity. The Company is also active in several other Latin American countries and in China, India, and South Africa.
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, unbeknownst to investors, the Registration Statement's representations were materially untrue, inaccurate, misleading, and/or incomplete because they failed to disclose that by the time of the July 31, 2015 IPO: (I) SunEdison, Inc. ("SunEdison") was experiencing unprecedented losses that would be revealed mere days after the Company's IPO was finalized; (ii) SunEdison was experiencing severe liquidity and debt issues that ended its ability to develop projects to sell to TerraForm Global, meaning that the Company's business model was effectively moribund from the outset; and (iii) the aggressive growth plans for SunEdison and TerraForm Global were unachievable.
On August 6, 2015, only two days after the TerraForm Global IPO closed, SunEdison reported loss of $263 million in its second quarter on $455 million of revenue, and a net loss of $0.93 per share compared to consensus estimates of a net loss of $0.55 per share. SunEdison's debt was also reported at nearly $11 billion. As a result, the Company's shares fell from $13.66 on August 5 to $11.27 on August 6, a drop of over 17 percent.
On October 7, 2015, SunEdison revised down its installation projections for 2016 and said it did not expect to sell any projects through next year to TerraForm Global. Rather, SunEdison will be looking exclusively for outside buyers or will hold the projects on SunEdison's balance sheet.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
CONTACT: CONTACT: Robert S. Willoughby Pomerantz LLP rswilloughby@pomlaw.com
