An update addressing an issue where some players may not be able to see or reach loot dropped by Terramorphous has been released for PC, Playstation 3, and Xbox 360. After this update is installed, loot dropped by Terramorphous should be visible and reachable by all players.
For update information, please visit:
Xbox 360: http://support.gearboxsoftware.com/entries/22147216-Xbox-360-Update-Hot-Fix-Information
Playstation 3: http://support.gearboxsoftware.com/entries/22127181-PlayStation-3-Update-Hot-Fix-Information-