A lawsuit was filed on behalf of investors in Sunrun Inc (NASDAQ:RUN) shares over alleged securities laws violations. Deadline: July 5, 2016. NASDAQ:RUN investors should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 05/12/2016 -- An investor, who purchased shares of Sunrun Inc (NASDAQ:RUN), filed a lawsuit in California over alleged Securities Laws violations by Sunrun Inc in connection with Sunrun's Initial Public Offering (the "Offering" or "IPO"), which commenced on or about August 5, 2015.
Investors who purchased shares of Sunrun Inc (NASDAQ:RUN) have certain options and for certain investors are short and strict deadlines running. Deadline: July 5, 2016. NASDAQ:RUN investors should contact the Shareholders Foundation at email@example.com or call 858-779-1554.
On or about March 27, 2015, Sunrun Inc filed with the Securities and Exchange Commission ("SEC") its registration statement on Form S-l, which was amended and later declared effective by the SEC (the "Registration Statement").
However, the plaintiff says that meanwhile, lawmakers in the Nevada Legislature rejected a call by rooftop solar companies, including Sunrun Inc, to increase the cap on the number of consumers who can participate in net metering solar programs from 3% to a higher level.
The company conducted its Initial Public Offering ("IPO") on August 5, 2015 and sold 17.9 million shares at $14.00 per share as part of its IPO.
The plaintiff alleges on behalf of purchasers who purchased or otherwise acquired Sunrun Inc (NASDAQ:RUN) securities pursuant or traceable to the Company's Registration Statement and its Prospectus issued in connection with the Company's August 5, 2015 IPO, that the defendants violated Federal Securities Laws under the Securities Exchange Act of 1934 and the Securities Act of 1933. More specifically, the plaintiff claims that Defendants made allegedly false and/or misleading statements and/or failed to disclose that 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, that Sunrun Inchad been charging well above wholesale rates for the electricity it was selling to its net metering customers, that contrary to having listed customers dispersed across 15 states and the District of Columbia in its Registration Statement, Sunrun Inc had a substantial 20% customer concentration in Nevada alone, that 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, that because Sunrun Inc was employing an unreasonably low discount rate of 6% in calculating the value of it retained assets, it was overstating their value, and that 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.
Shares of Sunrun Inc (NASDAQ:RUN) declined to as low as $4.86 per share in February 2016.
Those who purchased shares of Sunrun Inc have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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