Renewable energy company SunEdison Inc. has settled a lawsuit with the shareholders of Latin America Power Holding BV for $28.5 million.
As a Fortune report explains, SunEdison entered a deal last year to acquire Latin America Power, which owns renewable energy projects in Peru and Chile, for about $700 million; however, SunEdison later backed out of the agreement. Latin America Power shareholders launched a lawsuit and sought $150 million.
In a press release, SunEdison says the parties, including its TerraForm Power yieldco, have resolved the case on mutually acceptable terms, and the acquisition will not be completed. The lawsuit, which was filed in New York state court, will be dismissed without prejudice, and a temporary restraining order issued in that action will be vacated immediately.
SunEdison says the settlement imposes no payment obligations on TerraForm Power, and none of the parties has admitted to any wrongdoing or liability with respect to the lawsuit claims.
According to Fortune, SunEdison’s stock jumped on Friday morning following the company’s announcement.