- Press Releases
May 15 (Renewables Now) - US residential solar firm Sunrun (NASDAQ:RUN) is facing a class action lawsuit related to recent reports that the company is being investigated for inadequate disclosure of customer cancellations.
Pomerantz LLP said Friday the suit has been filed in United States District Court, Northern District of California on behalf of a class consisting of investors who acquired Sunrun securities between September 16, 2015 and May 2, 2017. They seek to recover compensable damages in relation to the company’s violations of the Securities Exchange Act of 1934.
On May 3 the Wall Street Journal said, citing sources, that the inadequate disclosure of customer cancellation numbers in the US residential solar sector is the subject of a Securities and Exchange Commission (SEC) probe. It mentioned Sunrun and Tesla’s SolarCity (NASDAQ:SCTY) as two companies being investigated.
The class complaint alleges that during the class period the defendants made false and/or misleading statements and/or failed to disclose that (i) Sunrun did not adequately report the number of customers that have canceled contracts; (ii) discovery of the foregoing conduct would subject the company to heightened regulatory scrutiny and potential civil sanctions; and (iii) that Sunrun's public statements were materially false and misleading at all relevant times.
On May 3, following the WSJ report, the company’s share price lost 8.83% and closed at EUR 4.75. As of today the price remains below its May 2 level.
Presenting its financial results for the first quarter of 2017 last week, Sunrun said it deployed 73 MW of solar systems in the period, marking a 21% increase from a year ago and above the company's guidance. It reiterated its forecast for 325 MW in deployments in the full year.