WILMINGTON, Del., Nov. 23, 2015 (GLOBE NEWSWIRE) -- Andrews & Springer LLC, a boutique securities class action law firm focused on representing shareholders nationwide, announced today that a securities fraud class action lawsuit has been filed in the U.S. District Court, Northern District of California, Case No. 15-cv-04981, on behalf of investors of TerraForm Global, Inc. (NASDAQ:GLBL) (“TerraForm Global” or the “Company”) that purchased TerraForm securities pursuant or traceable to the Company's initial public offering on July 31, 2015 (“IPO”). If you purchased TerraForm Global securities traceable to the IPO, you may, no later than December 28, 2015, request that the Court appoint you lead plaintiff of the proposed class.
A copy of the complaint is available from Andrews & Springer LLC or the Court. If you would like to join the class action, please visit our website or contact Craig J. Springer, Esq. at cspringer@andrewsspringer.com, or call toll free at 1-800-423-6013. You may also follow us on LinkedIn – https://www.linkedin.com/company/andrews-&-springer-llc, Twitter – www.twitter.com/AndrewsSpringer or Facebook - www.facebook.com/AndrewsSpringer for future updates.
NO CLASS HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN ONE. YOU MAY ALSO REMAIN AN ABSENT CLASS MEMBER AND DO NOTHING AT THIS POINT. YOU MAY RETAIN COUNSEL OF YOUR CHOICE.
On August 4, 2015, TerraForm Global, a subsidiary of SunEdison, Inc., which owns and operates renewable energy generation assets worldwide, filed its Prospectus with the U.S. Securities and Exchange Commission. In its IPO, the company sold 45 million shares of Class A common stock at an offering price of $15 per share representing gross proceeds of $675 million. The proceeds from the IPO were purportedly to be used to repay outstanding debt, fund pending acquisitions, repay project-level debt, and advance general corporate purposes.
On August 6, 2015, SunEdison issued a press release disclosing its second quarter 2015 financial results, reporting a loss of $0.93 per share compared to analyst estimates of a $0.55 per share loss. On this news, TerraForm Global’s stock declined $2.39 per share, or 17.4%, to close at $11.27 per share on August 6, 2015.
On October 7, 2015, SunEdison revealed that it was significantly reducing its workforce by up to 15%, and indicated a slowdown in the acquisition of energy generating assets, including solar and wind assets. On October 22, 2015, the company's shares closed at $7.94 for a cumulative loss of more than $7 per share since the July 31, 2015 IPO.
As a result of this news, on October 22, 2015, the Company's shares closed at $7.94 for a cumulative loss of more than $7 per share since the July 31, 2015 IPO, causing shareholders to incur millions in losses. TerraForm Global’s stock price is currently trading 50% below its IPO price.
On October 29, 2015, a TerraForm Global shareholder filed a securities fraud class action lawsuit against the Company. According to the complaint, TerraForm Global's close financial and operational relationship with SunEdison made the company particularly sensitive to SunEdison's business performance. The complaint alleges that TerraForm Global's Registration Statement was therefore misleading because it failed to state that SunEdison was about to report disappointing financial results that fell far below analyst expectations, and that TerraForm Global's business prospects would be negatively affected by SunEdison's poor performance. Further, the Registration Statement did not disclose that SunEdison was limiting distribution of assets to TerraForm Global, and, in turn, TerraForm Global would not achieve the degree of growth necessary to sustain the dividend yield promised to investors.
If you wish to serve as lead plaintiff, you must move the Court no later than December 28, 2015. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Craig J. Springer, Esq. at cspringer@andrewsspringer.com, or call toll free at 1-800-423-6013. You may also follow us on LinkedIn – www.linkedin.com/company/andrews-&-springer-llc, Twitter – www.twitter.com/AndrewsSpringer or Facebook - www.facebook.com/AndrewsSpringer for future updates.
Andrews & Springer is a boutique securities class action law firm representing shareholders nationwide who are victims of securities fraud, breaches of fiduciary duty or corporate misconduct. Having formerly defended some of the largest financial institutions in the world, our founding members use their valuable knowledge, experience, and superior skill for the sole purpose of achieving positive results for investors. These traits are the hallmarks of our innovative approach to each case our Firm decides to prosecute. For more information please visit our website at www.andrewsspringer.com. This notice may constitute Attorney Advertising.