Class Action litigation has been filed in the United States District Court for the Northern District of California against Sunrun, as well as the Company's Chief Executive Officer and Chief Financial Officer, on behalf of investors who purchased or otherwise acquired Sunrun securities between September 10, 2015 and May 2, 2017, inclusive (the "Class"), alleging violations of the Securities Exchange Act of 1934.
On May 3, 2017, the Wall Street Journal published an article entitled "SEC Probes Solar Companies Over Disclosure of Customer Cancellations," which reported that the Company was the subject of a probe by the Securities and Exchange Commission ("SEC"). The Wall Street Journal article reported, among other things, 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." Following this news, Sunrun's shares declined in price by $0.46 per share, or 8.83%, to close at $4.75 per share on May 3, 2017.
On May 22, 2017, the Wall Street Journal published an article entitled "Solar Company Sunrun Was Manipulating Sales Data, Say Former Managers," which reported that sales managers were told by Sunrun superiors in 2015 that they shouldn't process customer cancellations until after the Company's Initial Public Offering ("IPO"). One former manager allegedly changed current cancellations in the Company's sales system by inputting the date "12/31/2099". Then, according to the May 3 article in the Wall Street Journal, the former manager subsequently "input the cancelations into Sunrun's customer-management software after the IPO 'in a slow drip,' so as not to call attention to a rise in cancelations."
The complaint alleges that throughout the Class Period the defendants made false and/or misleading statements, as well as failed to disclose that (1) Sunrun failed to adequately disclose how many customers canceled contracts after signing up for the Company's home-solar energy systems, (2) discovery of the foregoing conduct would subject the Company to heightened regulatory scrutiny, and (3) as a result, Sunrun's public statements were materially false and misleading at all relevant times.
If you are a member of the proposed Class, you may move the court no later than July 3, 2017 to serve as a lead plaintiff for the purported class. You need not seek to become a lead plaintiff in order to share in any possible recovery. If you would like to discuss the complaint or our investigation, please contact us by emailing email@example.com or by calling 800-290-1952.
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Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this Notice, the action, your rights, or your interests, please contact:
Donald R. Hall
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
Fax: (212) 687-7714
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California 94104
Fax: (415) 772-4707
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SOURCE Kaplan Fox & Kilsheimer LLP