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Gainey McKenna & Egleston Announces a Class Action Lawsuit Has Been Filed Against XPLR Infrastructure, LP (f/k/a NextEra Energy Partners, LP) (NEP)

1. A class action lawsuit has been filed against NEP regarding misleading statements. 2. Allegations include struggles with operations and risks from CEPF arrangements. 3. KeyBanc downgraded NEP's recommendation due to potential equity dilution issues. 4. NEP's unit price fell 6.33% following the news of the lawsuit. 5. Cash distributions to investors may be halted to address financial concerns.

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FAQ

Why Bearish?

The lawsuit could lead to increased uncertainty and potential financial strain. Historical cases show similar lawsuits often negatively impact stock prices.

How important is it?

The article addresses key operational issues and legal challenges facing NEP, presenting significant risks to investors.

Why Short Term?

Immediate implications from the lawsuit and downgrades are expected to impact NEP's stock price soon. However, longer-term recovery may follow if operational challenges are addressed.

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NEEXPLR
NEW YORK, March 11, 2025 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Southern District of Florida on behalf of all persons or entities who purchased or otherwise acquired XPLR Infrastructure, LP (f/k/a NextEra Energy Partners, LP) (“XPLR” or the “Company”) (NYSE: NEP) securities between January 26, 2021, and January 27, 2025, inclusive (the “Class Period”). The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company 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) the Company 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, thew Company’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, the Company’s unit price fell $3.78 per unit, or 6.33%, to close at $55.94 per unit on April 26, 2023. Investors who purchased or otherwise acquired shares of XPLR should contact the Firm prior to the May 9, 2025 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com. Please visit our website at http://www.gme-law.com for more information about the firm.

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