Sunrun investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, Sunrun is a provider of residential solar electricity and purports to operate the “second largest fleet of residential solar energy systems” in the United States.
On or about March 27, 2015, Sunrun filed with the SEC its registration statement on Form S-l (Registration No. 333- 205217), which was amended and later declared effective by the SEC (the “Registration Statement”). Meanwhile, lawmakers in the Nevada Legislature rejected a call by rooftop solar companies, including Sunrun, to increase the cap on the number of consumers who can participate in net metering solar programs from 3% to a higher level. On August 5, 2015, Sunrun sold 17.9 million shares at $14.00 per share as part of its IPO.
The Complaint alleges that defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about Sunrun’s business, operations, and prospects throughout the Class Period. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (a) Sunrun’s actual historical operating costs were being understated by not identifying and disclosing the fixed grid costs being borne for it by public utilities where net metering programs were being employed; (b) Sunrun had been charging well above wholesale rates for the electricity it was selling to its net metering customers; (c) 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; (d) Sunrun’s ability to continue to convince customers to sign 20-year contracts—which lowers the fixed costs for installing solar systems on those customers’ houses—was in jeopardy due to the ongoing regulatory review of net metering programs in 20 of the 40 states that then permitted net metering; (e) because Sunrun was employing an unreasonably low discount rate of 6% in calculating the value of it retained assets, it was overstating their value; and (f) as a result of the foregoing, at the time of the IPO, the Company’s business and financial prospects were not what defendants had led the market to believe they were in the Registration Statement.
In the eight months since the IPO, Sunrun stock fell as low as $4.86 per share, and closed at $7.50 per share on May 6, 2016.
If you are a member of the class described above, you may no later than July 5, 2016 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org. For more information about Kessler Topaz Meltzer & Check, LLP, please visit our website at http://www.ktmc.com. If you would like additional information about the suit, please fill out the attached form as promptly as possible and return it by fax to 610-667-7056, or by mail in the enclosed envelope.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087 1-888-299-7706 (toll free) or 1-610-667-7706
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