The Law Office of Robbins Arroyo LLP Announces that It Has Filed a Class Action Lawsuit Against NRG Yield, Inc. (NYLD)
Robbins Arroyo LLP announces that it filed a class action lawsuit on April 19, 2016 in the Superior Court of the State of California, County of Kern, against NRG Yield, Inc. (NYSE: NYLD) for violations of the Securities Act of 1933 on behalf of all purchasers of NRG Yield Class C common stock issued pursuant to the company’s Class C stock offering completed on June 29, 2015 (the “Stock Offering”).
NRG Yield, Inc. Accused of Filing Misleading Stock Offering Documents
According to the complaint, on June 29, 2015, NRG Yield completed the Stock Offering, selling nearly 28.2 million shares of Class C common stock to the investing public for $22 per share, raising gross proceeds of $620 million.
However, while the company was executing the recapitalization and Stock Offering, it was experiencing historically poor wind conditions that were severely impairing its wind energy generation. The complaint alleges that even though the company knew that its wind production for the second quarter of 2015 was extremely weak and that this would have an adverse impact on its performance and results for that quarter, it pushed through with the Stock Offering at an inflated price. Further, the Registration Statement did not contain any known trends for the second quarter of 2015, let alone that NRG Yield was in the midst of a severe weather condition.
NRG Yield missed its second projected quarter 2015 adjusted earnings before interest, taxes, depreciation, and amortization, as well as projected cash available for distribution guidance, and reduced its guidance for the full 2015 fiscal year. NRG Yield Class C common stock closed at $14.65 per share on April 13, 2016, or 33% less than the price at which the stock was sold in the Stock Offering.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact attorney Darnell R. Donahue of Robbins Arroyo LLP at 800-350-6003, or you can complete the form below and we will contact you directly.