A lawsuit accusing Brookfield affiliates of seizing control of solar company PosiGen and driving it deeper into insolvency has been dismissed with prejudice in Connecticut federal court, ending a closely watched dispute that preceded the company's Chapter 11 filing in Texas.

In a joint stipulation filed Tuesday, plaintiff Connecticut Green Bank and defendants BID Administrator LLC, BID III PosiGen Aggregator LP, and BII BID US Holdings LLC agreed to end the case permanently, with each side bearing its own costs and attorneys' fees. The case accused the Brookfield-affiliated entities of improperly exercising control over PosiGen's finances and operations.

The dismissal comes roughly three months after PosiGen PBC filed for Chapter 11 protection in the Southern District of Texas, estimating it held between $100 million and $500 million in both assets and liabilities and listing between 10,000 and 25,000 creditors.

Connecticut Green Bank sued in October 2025, alleging that Brookfield had taken over key business decisions at PosiGen and pushed the company into breaching the bank's loan agreements. The complaint asserted that Brookfield chose which business segments would continue to operate, how funding would be allocated, and which employees would be terminated, while prioritizing business lines in which it had a financial stake.

PosiGen and the Brookfield-affiliated defendants pushed back, arguing in opposition to a temporary restraining order that the bank was unlikely to establish damages and that the company had been in "dire financial straits." They said Brookfield, as PosiGen's largest creditor, had provided financing that enabled the company to continue operating as it pursued restructuring options or a potential wind-down.

The joint stipulation filed Tuesday contains no admission of liability and offers no details regarding any settlement terms. It states only that the action "is dismissed with prejudice with each party to bear its own costs and attorneys' fees," and that the stipulation is effective upon filing.

The dismissal narrows the litigation landscape surrounding PosiGen, which has also faced a proposed class action in the District of Delaware alleging violations of the federal Worker Adjustment and Retraining Notification Act in connection with the termination of approximately 500 employees at sites in Pennsylvania, Louisiana, and other states.

While the Connecticut case is now closed, the Chapter 11 proceedings in Texas will continue to determine how PosiGen addresses its debt load and the claims of its thousands of creditors.

Representatives for the parties did not immediately respond to requests for comment Thursday.

Connecticut Green Bank is represented by Robert S. Hoff, Kate E. Cassidy, and Tamara Van Heel of Wiggin and Dana LLP.

PosiGen PBC is represented by Charles R. Koster, Thomas E. Lauria, Michael C. Shepherd, Fan B. He, Aaron E. Colodny, Andrea Amulic, and Andrea Kropp of White & Case LLP.

BID Administrator LLC, BID III PosiGen Aggregator LP, and BII BID US Holdings LLC are represented by Thomas J. Finn of McCarter & English LLP and Andrew J. Ehrlich, Gregory F. Laufer, and Jacob A. Adlerstein of Paul Weiss Rifkind Wharton & Garrison LLP.

The suit is Connecticut Green Bank v. PosiGen PBC et al., case number 3:25-cv-01841, in the U.S. District Court for the District of Connecticut.