Andrews & Springer LLC filed a stockholder derivative complaint on behalf of nominal defendant, TerraForm Global, Inc. (“TerraForm Global”) against TerraForm Global’s board of directors (the “Board”) in the Delaware Court of Chancery, case number 12196-VCL. TerraForm Global is a renewable energy company that owns clean power generation assets and provides wind, geothermal, hydroelectric and hybrid energy solutions to customers globally.
The complaint alleges that TerraForm Global’s Board breached their fiduciary duties by agreeing to pay TerraForm Global’s financially distressed controlling stockholder, SunEdison, Inc. (“SunEdison”), $231 million in a cash in exchange for certain unfinished solar projects in India. SunEdison faced an upcoming deadline to repay $100 million under a margin loan to Deutsche Bank. Recognizing that it did not have time for TerraForm Global’s directors to conduct a deliberate and independent process, SunEdison took matters into it owns hands and forced the Board to approve an unfair acquisition of unfinished projects.
Please click here for a copy of the Public Version of the Verified Stockholder Derivative Complaint.