Brookfield Loses $3.3 Billion TerraForm Buyout Ruling Appeal (1)

Brookfield Asset Management Inc.'s $3.3 billion acquisition of TerraForm Power Inc. will face renewed scrutiny after Delaware’s top court Monday revived shareholder litigation challenging the transaction.

The state’s justices put the deal back in the legal crosshairs, overturning the ruling of a judge who threw the case out last year. Although the judge was right to reject allegations that TerraForm investors were coerced into approving the buyout, she should have let the lawsuit move forward with claims that the transaction’s architects hid conflicts of interest, Justice Karen L. Valihura said.

“The Court of Chancery recognized that this was a close ...