BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Sunrun Inc. (“Sunrun” or the “Company”) (NASDAQ: RUN) securities in connection with Sunrun’s Initial Public Offering (the “Offering” or “IPO”), which took place on or about August 5, 2015. Sunrun investors have until July 5, 2016 to file a lead plaintiff motion.
Investors who suffered losses on their Sunrun investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to email@example.com.
Sunrun engages in the design, development, installation sale, ownership, and maintenance of residential solar energy systems in the United States. Unbeknownst to investors the Company relied on complex debt arrangements to fund its growth, and could not sustain the revenues and profitability projected to investors during the IPO process. From an opening price of $14 per share, the stock has fallen as low as $4.96 per share, amid market reaction to the Company’s exposure to complex debt instruments.
According to the lawsuit, the offering documents filed in connection with the IPO contained materially false and misleading statements and omissions, including that: (1) Sunrun understated its actual historical operating costs by not identifying and disclosing the fixed grid costs being borne for it by public utilities where net metering programs were being employed; (2) Sunrun had been charging well above wholesale rates for the electricity it was selling to its net metering customers; (3) contrary to having listed customers dispersed across 15 states and the District of Columbia in its Registration Statement, Sunrun had a substantial 20% customer concentration in Nevada alone; (4) Sunrun’s ability to continue convincing customers to sign 20-year contracts was in jeopardy due to the ongoing regulatory review of net metering programs; (5) Sunrun was overstating its value by employing an unreasonably low discount rate of 6% in calculating the value of it retained assets; and (6) as a result, Sunrun’s business and financial prospects were not what defendants had led the market to believe they were at the time of the IPO. When the true details entered the market, the lawsuit claims that investors suffered damages.
If you purchased shares of Sunrun during the Class Period you may move the Court no later than July 5, 2016 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at http://www.howardsmithlaw.com.
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