US-based TerraForm Power, controlled by Brookfield Renewable Partners L.P., announced the resolution of a legal dispute filed by its former President and Chief Executive Officer Carlos Domenech. The dispute, linked to the financial management of parent company SunEdison, culminated in a nine-year legal process settled through a $34.5mn agreement (approximately €31.8mn). The United States District Court for the District of Maryland had found the company liable following a trial held during the summer of 2024.
Carlos Domenech, former President and CEO of TerraForm Power, Inc. and TerraForm Global, Inc., and Executive Vice President of SunEdison, was dismissed without formal cause on November 20, 2015, by the boards of directors of the respective companies. Shortly thereafter, Brookfield Renewable Partners L.P. and its institutional partners took control of both firms in the wake of SunEdison’s bankruptcy, declared on April 21, 2016.
A dispute centred on disputed financial practices
In his complaint filed on January 20, 2025, with the Maryland federal court (reference 8:18-cv-02523-PX), Mr Domenech claimed he was terminated for reporting false liquidity disclosures made by SunEdison executives. He also alleged misleading financial forecasts and other financial misconduct by the parent company targeted at investors.
The trial took place in July and August 2024 before Federal Judge Paula Xinis, who ruled in favour of Mr Domenech on the matter of liability. While the settlement does not imply formal admission of guilt, it brings all related civil proceedings to a close.
Consequences and post-bankruptcy context
The case is part of a broader set of legal consequences following SunEdison’s collapse. Once a major actor in the renewable energy sector, the group had expanded rapidly, partly through affiliated companies such as TerraForm Power and TerraForm Global, before collapsing under accumulated debt.
The announced settlement is not expected to affect the current operations of TerraForm Power, now fully owned by Brookfield, whose business focuses on global energy infrastructure. No further legal actions directly related to the events described are ongoing at this time, according to published documents.
