SunEdison filed for Chapter 11 bankruptcy just five months after Domenech’s ousting, further validating his warnings of looming financial catastrophe.
Legal Battle Spanning Multiple Courts
Domenech initiated his whistleblower retaliation claim with the U.S. Department of Labor in 2016 before escalating the case to federal court in Maryland in 2018. It was later transferred to New York as part of SunEdison’s sprawling multidistrict litigation (MDL).
The case saw several dramatic turns:
- In 2019, a federal judge dismissed claims against Blackmore and Hernandez, ruling that SOX did not impose liability on individual company directors.
- In April 2023, after extensive pretrial motions, the case was greenlit to proceed against Terraform Global and TERP.
- By January 2024, U.S. District Judge Paula Xinis ruled in favor of Domenech’s liability claim, setting the stage for a damages trial.
Settlement Reached On Eve of Trial
Just before the damages trial was set to begin on January 21, 2024, the parties announced a settlement, bringing an end to the grueling legal fight. On March 20, 2024, TERP publicly confirmed the $34.5 million payout.
A Resounding Message for Corporate Whistleblowers
The legal team behind Domenech hailed the settlement as a landmark moment in whistleblower protection law.
