Brookfield Infrastructure (BIP) Securities Investigation

Girard Sharp is investigating potential claims on behalf of former stockholders of Inter Pipeline Ltd. who received Brookfield Infrastructure Corp. securities in connection with Brookfield Infrastructure’s acquisition of Inter Pipeline in 2021. Since the acquisition, the market price of Brookfield Infrastructure Corp. shares has declined by approximately 20%.

Former Inter Pipeline stockholder who received Brookfield Infrastructure Corp. securities in the 2021 acquisition? Fill out our form or call (866) 981-4800 for request a free consultation.

Brookfield Infrastructure Market Price Falls Over 20%

In October 2023, Dalrymple Finance, an investment research firm, published a paper critical of Brookfield Infrastructure, stating that, since at least 2018, it has misled investors through its financial reporting. For example, according to Dalrymple, Brookfield Infrastructure has inflated the valuation of certain of its subsidiaries’ assets and has created the false appearance that the company generates sufficient cash through its operations to cover the distribution payments made to investors.

Dalrymple says that Brookfield Infrastructure inflates funds from operations (FFO) reported to investors by, among other ways, treating as revenue payments received from customers of its British utility subsidiary, BUUK, to build gas line connections. Dalrymple says that Brookfield Infrastructure treats the cash outflows to build the connections as capital expenditures, rather than expenses, and makes no corresponding adjustment to FFO. Therefore, according to Dalrymple, when BUUK receives $100 million from customers to build gas line connections, Brookfield Infrastructure gives the appearance that it has generated $100 million through its operations which is available to distribute to investors, when, in reality, BUUK has used all of that cash to build the connections.

Some of the financial reporting that Dalrymple challenges was incorporated in the Registration Statement filed with the Securities and Exchange Commission for the securities issued to former Inter Pipeline stockholders. Girard Sharp is investigating whether this Registration Statement may, in fact, contain materially misleading representations giving rise to claims under federal securities laws.

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