Sunrun Inc. is an American provider of residential solar panels and home batteries. It is headquartered in San Francisco, California.

According to the law firm press release, 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 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, as the market learned that Sunrun relied on complex debt arrangements to fund its growth and could not sustain the revenues the Company forecast leading up to the IPO, Sunrun stock fell as low as $4.86 per share, and closed at $7.50 per share on May 6, 2016.

A consolidated Complaint was filed on October 21, 2016.

Defendants filed a Motion to Dismiss on November 28, 2016. The Court granted the Motion on February 9, 2017 and issued a Judgment in favor of Defendants and against Plaintiffs on the same date.