Brookfield Wins TerraForm Appeal as Delaware Abandons Precedent

Sept. 20, 2021, 8:23 PM

Brookfield Asset Management Inc. persuaded Delaware’s top court Monday to shut down a pension fund’s lawsuit over its $650 million financing deal with TerraForm Power Inc., a partial subsidiary it later took private, in a ruling that reversed 15 years of precedent.

The state’s justices overturned a ruling by Vice Chancellor Sam Glasscock III, who authorized a nearly immediate appeal after voicing misgivings about his own decision to let the case move forward in Delaware’s Chancery Court.

Glasscock held last year that the stock dilution claims had survived Brookfield’s $1.6 billion buyout of TerraForm—two years after the transaction targeted ...

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