Shareholder rights law firm Robbins Arroyo LLP announced that a class action complaint was filed against Sunrun in the U.S. District Court for the Northern District of California. The complaint is brought on behalf of all purchasers of Sunrun securities between September 16, 2015 and May 2, 2017, for alleged violations of the Securities Exchange Act of 1934 by Sunrun’s officers and directors. Sunrun engages in the design, development, installation, sale, ownership and maintenance of residential solar energy systems in the United States.
Sunrun accused of hiding canceled contracts figures from investors
According to the complaint, Sunrun failed to adequately disclose in its public filings how many customers canceled contracts after signing up for its home-solar energy system and that, as a result, Sunrun would be subject to heightened regulatory scrutiny and potential civil sanctions. The cancelation metric is a critical way for investors to evaluate the company’s health, but Sunrun continued to provide limited transparency in this regard. On May 3, 2017, The Wall Street Journal reported that Sunrun was the subject of a probe by the U.S. Securities and Exchange Commission (“SEC”), revealing that the SEC issued a subpoena to Sunrun and interviewed current and former employees about the adequacy of its disclosures on account cancelations. The article further stated that the cancelation figure grew to be as high as 40% earlier this year, causing Sunrun to halve its growth expectations in 2016 from 80% to 40%. On this news, Sunrun’s share price fell $0.46, or 8.83%, to close at $4.75 per share on May 3, 2017.
Sunrun shareholders have legal options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm’s website.
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News item from Robbins Arroyo LLP