On February 25, 2020, the Court approved the Settlement pursuant to the Order and Final Judgment.On December 4, 2019 a Supplemental Notice Regarding Modifications to the Proposed Class Action Settlement was mailed to all purchasers of TerraForm Global, Inc. Common Stock in or traceable to Global’s initial public offering, who timely submitted a Proof of Claim form to participate in the proposed class action settlement and have been determined to be a Purported Claimant by the Claims Administrator. To view a copy of this Supplemental Notice, click here.
If approved by the Court, the Settlement will provide forty-eight million seven hundred fifty thousand dollars ($48,750,000) (the “Settlement Amount”) gross, plus interest that accrues from the time Final Judgment is entered, minus attorneys’ fees, expenses, costs, administrative expenses, Plaintiff awards and net of any taxes on interest, to pay valid claims of Settlement Class Members. The Court will hold a Settlement Hearing on February 25, 2020 to decide whether to approve the Settlement.
Your recovery will depend on the number of shares of Common Stock you purchased and sold, the dates of those purchases and sales, and the prices at which you, and other Settlement Class Members who filed valid claims, purchased and sold those shares. Based on the claims submitted and the information received from the Claims Administrator to date, if all curable deficient claims are in fact cured, the estimated average recovery per share of Common Stock will be approximately $0.58 per share for each share claimed to have incurred a loss by Claimants with potentially valid claims before deduction of Court-approved fees, expenses and awards, and costs of notice and claims administration. This estimate solely reflects the average recovery per share of Common Stock based on the claims submitted. This is not an estimate of the actual recovery per share you should expect. The actual amount per share you receive will depend on a number of factors, including the number of shares that were submitted with deficiencies that are cured and other factors that are explained in the Plan of Allocation described in the Notice. This estimate compares favorably to the estimated average recovery per damaged share of Common Stock in the Settlement, before modification, as provided in the Notice, which assumed that all Settlement Class Members would participate in the Settlement and amounted to approximately $0.21 per share for each share of Common Stock purchased during the entire damage period that incurred a loss. (In the Notice, the estimated average recovery for each share of Common Stock was stated to be approximately $1.33 per share, as determined by Plaintiffs’ expert for each share purchased at the time of the IPO and held until the end of the entire applicable damage period, before deduction of Court-approved fees, expenses and awards, and costs of notice and claims administration. The $1.33 per share was the aggregate recovery amount available to all those who purchased any given share of Common Stock during the entire damage period and incurred a loss. Each such share is estimated to have traded at a loss to each of its purchasers multiple times, on average, during the entire applicable damage period; with each such purchaser deemed to be entitled to a recovery under the Settlement. The total recovery per share provided in the Notice would have resulted in each such purchaser receiving as a recovery from the Settlement an estimated average of approximately $0.21 per share, after applying Plaintiffs’ expert’s model.)
Attorneys for Plaintiffs (“Plaintiffs’ Counsel”) have not received any payment for their work or reimbursement for expenses incurred in investigating the facts, conducting this litigation and negotiating the Settlement on behalf of the Plaintiffs and the Settlement Class. Plaintiffs’ Counsel intends to ask the Court to award them fees of up to 25% of the Settlement Amount ($12,187,500), reimbursement of litigation expenses paid or incurred of no more than $475,000 and an Award to Plaintiffs collectively not to exceed $15,000. Based on the claims submitted, if all curable deficient claims are in fact cured, the attorneys’ fees and expenses and Award to Plaintiffs are estimated to average $0.15 per share of the total number of shares of Common Stock claimed to have incurred a loss by Claimants with potentially valid claims. If approved by the Court, these amounts will be paid from the Settlement Fund. These fees and expenses, if requested and approved in full, amount, in aggregate, to $1,937,500 less than the corresponding amounts stated in the Notice for attorneys’ fees, reimbursement of expenses and Award to Plaintiffs in connection with the Settlement, before modification.
Based on the claims submitted, if all curable deficient claims are in fact cured, the approximate recovery, after deduction of attorneys’ fees, Plaintiff awards and expenses approved by the Court, is, on average, $0.43 per share for each share of Common Stock claimed to have incurred a loss by Claimants with potentially valid claims. This estimate is based on the assumption that the maximum amounts set forth in the preceding paragraph will be awarded. Your actual recovery, if any, depends on the aggregate losses of all Settlement Class Members determined to have submitted valid claims, the date(s) you purchased and sold Common Stock, the purchase and sales prices, the number of shares purchased, the amount of losses incurred and your Recognized Loss. This estimate compares favorably to the estimated average recovery per damaged share of Common Stock in the Settlement, before modification, after deduction of attorneys’ fees, Plaintiff awards and expenses approved by the Court, as provided in the Notice, which assumed that all Settlement Class Members would participate in the Settlement and would have amounted to approximately $0.15 per share for each share of Common Stock purchased during the entire damage period that incurred a loss, after applying Plaintiffs’ expert’s model.
The Settlement resolves the Action (defined below) concerning whether defendants (i) Global, (ii) Ahmad Chatila, Carlos Domenech Zornoza, Jeremy Avenier, Martin Truong, Brian Wuebbels (the “Individual Defendants”), and (iii) J.P. Morgan Securities LLC, Barclays Capital Inc., Citigroup Capital Markets, Inc., Morgan Stanley & Co. LLC, Goldman, Sachs & Co. (n/k/a Goldman Sachs & Co. LLC), Merrill Lynch, Pierce, Fenner & Smith Incorporated (n/k/a BofA Securities, Inc.), Deutsche Bank Securities Inc., BTG Pactual US Capital LLC, Itaú BBA USA Securities, Inc., SMBC Nikko Securities America, Inc., SG Americas Securities, LLC, and Kotak Mahindra Inc. (the “Underwriter Defendants”) (collectively with Global and the Individual Defendants, the “Defendants”), violated federal securities laws by allegedly making misrepresentations and/or omissions of material fact in the Registration Statement filed with the U.S. Securities and Exchange Commission in connection with Global’s IPO. More details and information about the Action were provided in the Notice and you are referred to that document for those details and additional information.
Your legal rights may be affected by this Action and the Settlement. Therefore, you should read the Supplemental Notice carefully.
SETTLEMENT CLASS MEMBERS WHO TIMELY SUBMITTED A CLAIM, DO NOT NEED TO TAKE ANY FURTHER ACTION TO BE ELIGIBLE TO PARTICPATE IN THE SETTLEMENT UNLESS THE CLAIMS ADMINISTRATOR CONTACTS YOU TO PROVIDE IT WITH ADDITIONAL INFORMATION.