INVESTOR ALERT: Pomerantz Law Firm Announces the Filing of a Class Action Against XPLR Infrastructure, LP f/k/a NextEra Energy Partners, LP and Certain Officers - XIFR

NEW YORK, March 11, 2025 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against XPLR Infrastructure, LP f/k/a NextEra Energy Partners, LP ("XPLR" or the "Company") (NYSE: XIFR) and certain officers. The class action, filed in the United States District Court for the Southern District of Florida, and docketed under 25-cv-80334, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired XPLR securities between January 26, 2021, and January 27, 2025, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.

If you are an investor who purchased or otherwise acquired XPLR securities during the Class Period, you have until May 9, 2025 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Danielle Peyton at [email protected] or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased. 

[Click here for information about joining the class action]

XPLR acquires, owns, and manages contracted clean energy projects in the United States, 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 market. Indeed, the Company maintained its yieldco business model while championing its ability to do so, consistently increasing the amount of its cash distributions to investors throughout the Class Period. In addition, from January 2021 to September 2023, XPLR continually asserted that it expected 12% to 15% per year growth in limited partner distributions as being a reasonable range of expectations through at least 2024.

Key to XPLR's (temporary) survival as a yieldco were the various private convertible equity portfolio financing ("CEPF") arrangements to which it was a party. Under these CEPF arrangements, the Company would issue convertible securities, such as convertible notes or convertible debt, to large investors, which would later convert into equity in the Company based on a specified triggering event, such as automatically converting upon the CEPF's maturity date. To avoid these triggering events, the Company would need to exercise its option to purchase, or buy out, the outstanding equity interests in each CEPF. In return for entering into a CEPF, XPLR received new equity capital, which it used to support its acquisition of additional cash-generating assets, thereby increasing its cash flows and, ultimately, its cash distribution to its unitholders.

The complaint alleges that, throughout the Class Period, 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: (i) XPLR was struggling to maintain its operations as a yieldco; (ii) Defendants temporarily relieved this issue by entering into CEPF arrangements while downplaying the attendant risks; (iii) XPLR could not buy out CEPFs before their maturity date without risking significant unitholder dilution; (iv) 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; (v) as a result of all the foregoing, XPLR's yieldco business model and distribution growth rate was unsustainable; and (vi) as a result, Defendants' public statements were materially false and misleading at all relevant times.

On April 25, 2023, KeyBanc Capital Markets ("KeyBanc") cut its recommendation on XPLR to sector weight from overweight, citing "impending equity dilution in an unfavorable financial landscape." KeyBanc's downgrade focused on XPLR's CEPF arrangements, expressing concern "that upcoming conversions would create a medium-term overhang in the higher capital cost environment[.]" Accordingly, KeyBanc concluded that although XPLR "has several levers it can pull to fund growth and continue to deliver on its 12%-15% DPU [distribution per unit] growth target, we think that overcoming circularity in the cost of capital/dilution equation in the current market is likely to be challenging, even for a premier developer like [XPLR]."

On this news, XPLR's unit price fell $3.78 per unit, or 6.33%, to close at $55.94 per unit on April 26, 2023.

On September 27, 2023, XPLR issued a press release announcing that it "is revising its limited partner distribution per unit growth rate to 5% to 8% per year through at least 2026, with a target growth rate of 6%."

On this news, XPLR's unit price fell $9.44 per unit, or 20.13%, to close at $37.46 per unit on September 27, 2023. XPLR's unit price continued to fall an additional $16.46 per unit, or 43.94%, over the following six consecutive trading sessions on unusually high trading volume, eventually closing at $21.00 per unit on October 5, 2023.

On November 9, 2023, Seaport Global Securities ("Seaport") downgraded XPLR units to sell from neutral with a $15.50 price target, having determined that the Company's revised cash distribution outlook was still likely too high. Seaport further predicted that a "dividend cut should become clear in Q1 2024," while citing "growing unease" over the Company's financing structure.

On this news, XPLR's unit price fell $3.07 per unit, or 11.35%, to close at $23.99 per unit on November 9, 2023.

Then, on January 28, 2025, XPLR issued a press release announcing that it was abandoning its yieldco business model and indefinitely suspending its cash distribution to unitholders, stating it would redirect those funds to execute on several priorities, the first of which was to buy out its remaining CEPF obligations. The same press release also revealed that the Company had appointed a new chief executive officer.

On a subsequent conference call that XPLR hosted with investors and analysts the same day, Defendants further revealed, inter alia, that the Company was revamping its entire management team and had appointed a new chief financial officer.

Following these disclosures, XPLR's unit price fell $3.97 per unit, or 25.13%, to close at $11.83 per unit on January 28, 2025. XPLR's unit price continued to fall an additional $1.39 per unit, or 11.75%, over the following two consecutive trading sessions, to close at $10.44 per unit on January 30, 2025.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

SOURCE Pomerantz LLP