A class action lawsuit was filed against XPLR Infrastructure LP (XIFR), formerly known as NextEra Energy Partners, by Levi & Korsinsky on July 9, 2025. The plaintiffs (shareholders) alleged that they bought XIFR stock at artificially inflated prices between September 27, 2023, and January 27, 2025 (Class Period) and are now seeking compensation for their financial losses. Investors who bought XIFR stock during that period can click here to learn about joining the lawsuit.
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XPLR Infrastructure acquires, owns, and manages contracted clean energy projects in the U.S., focusing on renewable projects that generate long-term, stable cash flows.
The company’s claims about its yieldco business model and the sustainability of its distribution growth rates (related to unitholder distributions) are at the heart of the current complaint.
XPLR’s Misleading Claims
According to the lawsuit, XPLR and three of its current and/or former senior officers and/or directors (the Defendants) repeatedly made false and misleading public statements throughout the Class Period. In particular, they are accused of omitting truthful information about XPLR’s ability to continue doing business as a yieldco, and related plans to halt cash distributions to investors, from SEC filings and related material.
During the Class Period, the company announced its plan to increase its distribution per unit by 5% to 8% each year until at least 2026, aiming for an average growth rate of 6% annually.
On January 25, 2024, during an investor call, XPLR said it was following through on its plans and aiming to increase distributions to limited partners by 6% per year through at least 2026. During the same call, the company said it still expects its limited partner distributions to grow between 5% and 8% per year, with 6% being a reasonable target, at least through 2026.
Moreover, during an earnings call on April 23, 2024, the company said its plan for financing the near-term convertible equity portfolio was clear. It also said XPLR is still exploring options to handle the remaining convertible equity financing and related buyout obligations due in 2027 and later.
Finally, during a conference call on July 24, 2024, XPLR said its goal to grow distributions by 6% per year remains for now. The company also said it does not need financing from acquisitions in 2024 to reach this goal and does not expect to need new growth equity until 2027.
However, subsequent events (detailed below) reveal that the defendants failed to inform investors that XPLR was struggling to maintain its operations as a yieldco business and that defendants temporarily alleviated this issue by entering into certain financing arrangements. What’s worse, XPLR could not resolve those financings before their maturity date without risking significant unitholder dilution and hence had to halt cash distributions to investors and divert the funds to resolve the financing issues.
Plaintiffs’ Arguments
The plaintiffs maintain that the defendants deceived investors by lying and withholding critical information about the company’s business during the Class Period. Importantly, the defendants are accused of misleading investors about the growth potential of its unitholder distributions.
The information became clear on January 28, 2025, when XPLR announced that it would suspend its entire cash distributions to common unitholders and abandon the yieldco model. Following the news, XIFR stock collapsed 25.1% on the same day.
To conclude, the defendants failed to inform investors that XPLR was struggling to maintain its yieldco business model and that it would potentially halt all cash distributions to unitholders. Due to these issues, XIFR stock has lost 42.8% so far this year.
