Brookfield Sued by Pension Fund Over $3 Billion TerraForm Buyout

A pension fund sued Brookfield Asset Management Inc. in Delaware, claiming its $3.3 billion take-private buyout of TerraForm Power Inc. “exploited the pandemic-induced stock market panic” in March 2020 to shortchange the subsidiary’s public investors.

The proposed shareholder class action, made public late Wednesday in Delaware Chancery Court, targets several affiliates of the Toronto-based asset management giant, along with the former TerraForm board and its ex-CEO, a senior executive with Brookfield’s infrastructure division.

The 109-page lawsuit accuses Brookfield of “opportunistically timing” the transaction to take advantage of an exchange ratio warped by the temporary stock market meltdown, then “wrongfully coercing” ...