According to the law firm press release, Sunrun Inc. engages in the design, development, installation, sale, ownership, and maintenance of residential solar energy systems in the United States. The Company markets and sells its products through direct channels, partner channels, mass media, digital media, canvassing, referral, retail, and field marketing.
Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Sunrun failed to adequately disclose how many customers canceled contracts after signing up for the Company’s home-solar energy system; (ii) discovery of the foregoing conduct would subject the Company to heightened regulatory scrutiny and potential civil sanctions; and (iii) as a result, Sunrun’s public statements were materially false and misleading at all relevant times.
On May 3, 2017, The Wall Street Journal published an article entitled “SEC Probes Solar Companies Over Disclosure of Customer Cancellations,” reporting that the Company was the subject of a probe initiated by the SEC. The Wall Street Journal reported 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.”
On this news, Sunrun’s share price fell $0.46, or 8.83%, to close at 4.75 on May 3, 2017.
On August 10, 2017, the Court issued an Order consolidating cases. The Consolidated Cases shall be identified as: In re Sunrun Inc. Securities Litigation. In the same order, the Court appointed Lead Plaintiffs and Counsel. The Lead Plaintiffs filed an amended Complaint on September 25.
Defendants filed a Motion to Dismiss the amended Complaint on November 9. On April 5, 2018, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiff was given leave to file an amended Complaint. On May 3, Lead Plaintiffs filed a second amended Complaint. On May 31, Defendants filed a Motion to Dismiss the amended Complaint. On July 19, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiff was given leave to file an amended Complaint. On August 9, 2018, counsel for the parties executed a Settlement Term Sheet, which memorializes the material elements of the Settlement. On September 27, 2018, the parties entered into a Stipulation of Settlement. The Court issued an Order preliminarily approving the Settlement on November 20.