September 30 (Renewables Now) - US residential solar installer Vivint Solar (NYSE:VSLR) and some of its officers and directors are being investigated for violations of federal securities laws.
Securities litigation firm Block & Leviton LLP on Friday said the proceedings are related to a report by short-seller Marcus Aurelius Value which says Vivint Solar has “largely concealed” undisclosed nationwide lawsuits with allegations that the company has forged the signatures of homeowners in customer contracts and opened bogus accounts. According to the report, those lawsuits state that “Vivint, as a pattern and practice, regularly forges signatures” on contracts in various states, including California, which accounts for about 34% of its operations.
The report can be found at: http://www.mavalue.org/research/vslr-fiddler-on-the-roof/
Marcus Aurelius claims that the alleged misdeeds aim to hide a weakness in Vivint Solar’s underlying business, especially after the company failed to meet revenue forecasts in four of the last five quarters.
Vivint Solar’s stock dropped by 12% on Friday to an intraday low of USD 5.86 (EUR 5.36) following the announcement.
(USD 1.0 = EUR 0.914)