Why Are Greenbacker Renewable Energy Investors Looking At Losses?

Shepherd Smith Edwards and Kantas Are Investigating The Brokers That Sold This Alternative Investment 

If you are a Greenbacker Renewable Energy Company (GREC) investor who is needing to explore your legal options, Shepherd Smith Edwards and Kantas (investorlawyers.com) wants to talk to you. The alternative asset company is looking at substantial losses following its announced acquisition by MN8 Energy Holdings.

While Greenbacker shares were originally sold for $10 – $9.186/share, —depending on which class an investor purchased—these same shareholders are now expected to receive about $1.71/share (plus possibly another $0.12/share in contingent consideration ) upon the closing of the acquisition. This means that Greenbacker investors are looking at a loss of more than 80% of the original share price.

Our broker fraud lawyers are investigating the brokerage firms that sold  Greenbacker Renewable Energy investors. This non-traded investment was sold as a Regulation D private placement, and there were growing concerns that it was unsuitably recommended by financial advisors to retail investors.

What Is Greenbacker Renewable Energy and How Much Was Raised From Investors?

• This is a publicly reporting, non-traded company that also happens  to be a climate-focused  power producer.
• It owns renewable energy assets in 22 US states. With over 185 energy products, its portfolio includes wind, solar, and battery storage.
• It also owns investment adviser Greenbacker Capital Management
• Through two offerings, Greenbacker Energy Renewable Company has raised nearly $1.65B from retail and institutional investors.

What Are Some of The Problems That Have Plagued Greenbacker Renewable Energy?

• There are reports that in 2024, the company suffered $242M in net losses.
• A re-underwriting process over its assets also lowered its net asset value.
• There is no secondary market for Greenbacker Renewable Energy shares, which makes this an illiquid investment that is hard to resell.
• This company suspended its share repurchase program in 2023. It did the same to shareholder distributions in May 2024.

Q

Why Are Broker Under Scrutiny For Selling Greenbacker Renewable Energy 

• There are concerns that financial advisors marketed this non-traded investment as a non-traded product as safe, sustainable, and income generating. Now, Greenbacker Renewable Energy investors are looking at serious losses.
• While this alternative investment was sold to investors looking for green infrastructure exposure, this was an unsuitable recommendation for unsophisticated investors. Regulation D offerings generally should not be sold to retail investors.
• There are Greenbacker Renewable Energy investors we have spoken to who say they were unaware of the problems this investment was facing or that they were at risk of losing their money. The issues impacting this alternative asset company have been going on for some time and brokers should have known better than to continue selling its shares to customers.
• Financial advisors earned 7-10% in upfront fees and commissions from selling Greenbacker Renewable Energy to customers. This could have created a conflict of interest. For some financial advisors, their own profit may have been the greater impetus than ensuring suitability and the best interest of investors.

I’m A Greenbacker Renewable Energy Company Investor. How Can I Recoup My Losses?

• Your best chance at financial recovery may be to file a claim against the brokerage firm that unsuitably recommended this Regulation D private placement to you.  This is not something you should do without a seasoned securities law firm on your side.
• Shepherd Smith Edwards and Kantas represents Regulation D private placement investors that have suffered losses because of unsuitable investment recommendations, misrepresentations and omissions, excessive concentration, Regulation Best interest violations, negligence, and other broker misconduct.
• If you do have grounds for a claim against your financial advisor over your Greenbacker Renewable Energy Company losses, you likely will have to make your claim in FINRA arbitration.

Contact our Greenbacker Renewable Energy Company Loss Attorneys Today

Call (800) 259-9010 or reach out to us online to schedule your free case consultation.