On August 23, 2017, Pomerantz LLP was appointed lead counsel in a class action lawsuit against Sunrun Inc. (“Sunrun” or the “Company”) and certain of its officers. The class action, filed in United States District Court, Northern District of California, and docketed under 17-cv-02537, is on behalf of a class consisting of investors who purchased or otherwise acquired Sunrun securities, seeking to recover compensable damages caused by defendants’ violations of the Securities Exchange Act of 1934.
Sunrun Inc. engages in the design, development, installation, sale, ownership, and maintenance of residential solar energy systems in the United States. The Company markets and sells its products through direct channels, partner channels, mass media, digital media, canvassing, referral, retail, and field marketing.
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Sunrun failed to adequately disclose how many customers canceled contracts after signing up for the Company’s home-solar energy system; (ii) discovery of the foregoing conduct would subject the Company to heightened regulatory scrutiny and potential civil sanctions; and (iii) as a result, Sunrun’s public statements were materially false and misleading at all relevant times.
On May 3, 2017, The Wall Street Journal published an article entitled “SEC Probes Solar Companies Over Disclosure of Customer Cancellations,” reporting that the Company was the subject of a probe initiated by the SEC. The Wall Street Journal reported that, according to a person familiar with the investigation, “[t]he SEC recently issued a subpoena to Sunrun and interviewed current and former employees about the adequacy of its disclosures on account cancellations.”
On this news, Sunrun’s share price fell $0.46, or 8.83%, to close at 4.75 on May 3, 2017.