NEW YORK, May 13, 2016 /PRNewswire/ -- Attorney Advertising-- Bronstein, Gewirtz & Grossman, LLC, notifies investors of class action against Sunrun, Inc. ("Sunrun" or the "Company") (NASDAQ: RUN). The class action has been filed on behalf of a class consisting of all persons or entities who purchased SunRun pursuant or traceable to the Company's Registration Statement and its Prospectus issued in connection with the Company's Initial Public Offering (the "Offering" or "IPO"), which commenced on or about August 5, 2015.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
Sunrun provides residential solar electricity and operates the "second largest fleet of residential solar energy systems" in the United States.
Around March 27, 2015, Sunrun filed its registration statement, Form S-l, with the United States Securities and Exchange Commission (the "SEC"), which was amended and later listed as effective by the SEC (the "Registration Statement"). In the meantime, Nevada lawmakers rejected a request from Sunrun and other rooftop solar companies, to increase the number from a 3% of consumers who can participate in net metering solar programs. On August 5, 2015, Sunrun sold 17.9 million stocks at $14.00 per share in its initial public offering (the "IPO"), raising over $250 million. Once news that Sunrun's growth relied on multifaceted debt arrangements and investors realized it was unlikely to withstand its revenues forecast leading up to the IPO, Sunrun stock dropped $4.96 per share and closed at $7.15 per share on April 14, 2016.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about Sunrun's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (a) Sunrun's operating costs were being understated by not recognizing and disclosing the fixed grid costs being borne for it by public utilities where net metering programs were being employed; (b) Sunrun had been overcharging electricity rates that it was selling to its net metering customers; (c) conflicting with its Registration Statement, Sunrun stated its customers were dispersed across 15 states and the District of Columbia in, when in truth it had a substantial 20% customer concentration in Nevada alone; (d) Sunrun's likelihood to continue to sign customers to 20-year contracts—which would lower the fixed costs for installing solar systems in houses—was at risk due to the ongoing regulatory review of net metering programs in 20 of the 40 states that then legalized net metering; (e) because Sunrun was employing an irrationally low discount rate of 6% in calculating the value of it retained assets, it was exaggerating their value; and (f) as a result of the above mentioned, at the time of the IPO, the Sunrun's business and financial prospects were misleading to the investing public.
Following this news that Sunrun could not sustain the revenues the Company forecasted leading up to the IPO, Sunrun dropped as low as $4.86 per share, to close at $7.50 per share on May 6, 2016.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint and join the action, visit the firm's website: http://www.bgandg.com/#!run/kmin8. To discuss this action, or have any questions, please contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email [email protected]. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. If you suffered a loss in Sunrun you have until July 5, 2016 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | [email protected]
SOURCE Bronstein, Gewirtz & Grossman, LLC