Business · Companies · 1 hr ago
New York court rejects Iberdrola's fraud case against Oaktree
A New York appeals court rejected Iberdrola's bid to revive a fraud lawsuit against US investment firm Oaktree.
The dispute involves the Salem Harbor power plant in Massachusetts, built under a contract awarded to Iberdrola's US subsidiary by Footprint Power, a company controlled by Oaktree.
In 2018, Footprint ended the contract when the plant was 98% complete, citing delays, and collected a $140 million performance guarantee from Iberdrola.
An arbitration ruling later found Footprint had acted in bad faith and awarded Iberdrola about $270 million, but Footprint went bankrupt and Iberdrola could not collect.
The New York court's decision ends Iberdrola's fraud case against Oaktree, after rejecting its appeal and finding the claim lacked a basis.
A separate lawsuit against the project's banks is still pending in New York, and Iberdrola says it is awaiting a trial date.
New York’s appellate court has rejected Iberdrola’s appeal to revive its fraud lawsuit against Oaktree and its executives.
The dispute arose from construction of a 674-megawatt power plant in Salem Harbor, Massachusetts.
Footprint Power ended the construction contract in April 2018 when the plant was 98% complete and called in a $140 million guarantee.
An arbitration award in 2021 ordered Footprint to pay about $270 million in damages and interest, but the company later declared bankruptcy.
Iberdrola says it is pursuing a separate lawsuit against the project’s financing banks.
- Who
- Iberdrola sued Oaktree and its executives over alleged fraud. The New York appellate court rejected Iberdrola’s appeal.
- What
- The court refused to let Iberdrola revive its fraud lawsuit.
- When
- The court’s decision is dated October 8; the article was published October 15, 2026.
- Where
- New York, United States; the dispute concerns a power plant in Salem Harbor, Massachusetts.
- Why
- The court confirmed that the fraud lawsuit lacked a basis; an earlier ruling held that a contract clause protected Oaktree from non-contractual claims.
Iberdrola
Oaktree
Fraud allegations
Iberdrola
Iberdrola alleged that Oaktree and its executives used deceptive practices and that the contract’s termination was a pretext to take its funds.
Oaktree
Oaktree relied on a contract clause that the courts found protected it from non-contractual claims.
Footprint Power awarded Iberdrola’s US subsidiary the contract to build the Salem Harbor plant.
Footprint terminated the contract when the plant was 98% complete and called in the guarantee.
An arbitration award found that Footprint had acted in bad faith and ordered it to pay about $270 million in damages and interest.
New York’s appellate court rejected Iberdrola’s appeal to revive its fraud lawsuit.
- Plant capacity
- 674 megawatts
- Contract value
- $700 million, or €630 million
- Guarantee
- $140 million
- Plant completion when contract ended
- 98%
- Arbitration award
- About $270 million in damages and interest
- Oaktree share of project equity
- 87.5%
What people are saying
está en fase mucho más avanzada a la espera de señalamiento de la fecha del juicio y que ya ha superado todas las fases iniciales
se basa en la interferencia maliciosa de los bancos en el proyecto e Iberdrola tiene expectativas de poder recuperar los importes que se le adeudan en dicho litigio