Shareholder of SunEdison filed a class action lawsuit through the law firm Kessler Topaz Meltzer & Check, LLP, on behalf of purchasers of SunEdison's securities between June 16, 2015 and October 6, 2015, inclusive (the "Class Period"). The shareholder class action complaint alleges that SunEdison and certain of its senior executive officers issued a series of false and misleading statements, and omitted to disclose material information, to investors during the Class Period.
SunEdison finances, builds, owns and operates various solar and wind power plants. As part of SunEdison's business, it is dependent upon the utilization of YieldCos such as TerraForm Global Inc. and TerraForm Power Inc. for the generation of predictable cash flows.
The shareholder class action complaint alleges that the defendants misled investors "by creating the picture that SunEdison had the financial wherewithal to sustain continued growth," but that "as the Company continued its acquisition binge, it was revealed that the entire scheme was nothing more than a house of cards."
On October 5, 2015, SunEdison filed a Form 8-K with the SEC announcing a 15% reduction of its workforce, and reporting that it would incur restructuring charges of $30 – $40 million. The following day, The Wall Street Journal reported that SunEdison had failed to make a required $400 million upfront cash payment for a $700 million planned acquisition of Latin American Power.
On October 6, 2015, SunEdison's stock closed at $8.69 per share – a decline of 72% from the value of the Company's stock at the beginning of the Class Period.
SunEdison shareholders who purchased their securities during the Class Period may, no later than February 1, 2016, petition the Court to be appointed as a lead plaintiff of the class.
For more detail: www.ktmc.com/new-cases/sunedison-inc