A securities class action has been filed in the USDC — S.D.FLA. against XPLR Infrastructure, LP (XIFR; NEP ) (“XPLR” or the “Company”) f/k/a NextEra Energy Partners, LP (“NextEra Energy Partners” or “NEP”) securities between January 26, 2021, and January 27, 2025, both dates inclusive (the “Class Period”).
XPLR acquires, owns, and manages contracted clean energy projects in the U.S., including a portfolio of contracted renewable generation assets consisting of wind, solar, and battery storage projects. The Company also owns contracted natural gas pipeline assets. The Company changed its name from “NextEra Energy Partners, LP” to “XPLR Infrastructure, LP” in January 2025.
Throughout the Class Period, XPLR operated as a “yieldco”—that is, a business that owns and operates fully built and operational power generating projects, focused on delivering large cash distributions to investors. Following the failures of other high-profile yieldcos, XPLR was one of the last remaining yieldcos on the marke. Under this business model, XPLR would periodically sell equity in the Company to generate funds to acquire attractive clean energy generation assets with predictable, stable cash flows under long-term contracts, and then distribute a large portion of those cash flows to investors in the form of dividends.
The Complaint alleges that, throughout the Class Period, the Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that:
(1) XPLR was struggling to maintain its operations as a yieldco;
(2) Defendants temporarily relieved this issue by entering into convertible equity portfolio financing (“CEPF”) arrangements while downplaying the attendant risks;
(3) XPLR could not buy out CEPFs before their maturity date without risking significant unitholder dilution;
(4) as a result, Defendants planned to halt cash distributions to investors and instead redirect those funds to, inter alia, buy out the Company’s CEPFs;
(5) as a result of all the foregoing, XPLR’s yieldco business model and distribution growth rate was unsustainable; and
(6) as a result, Defendants’ public statements were materially false and misleading at all relevant times, thereby harming investors.
As a result of XPLR’s announcement that it was abandoning its yieldco business model and indefinitely suspending its cash distribution to unitholders, XPLR’s unit price fell $3.97 per unit, or 25.13%, to close at $11.83 per unit on January 28, 2025.
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