As many as five law firms are investigating whether or not Vivint Solar breached any securities laws in the run up to its initial public offering.
The company’s shares fell 20% last week following its announcement of a quarterly loss of US$0.66 per share in its first results following its floatation on the New York Stock Exchange in October.
A number of class action lawsuits could follow if the law firms’ investigations lead them to believe they have a case. The Rosen Law Firm said the basis of the allegations is “that the company may have issued materially misleading business information to the investing public in connection with its initial public offering on September 30, 2014”.
Firms from California, Georgia, Louisiana and New York are also involved.
Meanwhile, on 11 September this year, papers were filed with a US court accusing Vivint Solar of obtaining credit reports on potential customer without their permission. On 12 November later the claimants filed a voluntary dismissal of the case. The circumstances under which they dropped the case are unclear.
The company’s last quarterly results also show that it is holding US$400,000 in reserve to account for the outcome of a case brought against it by a former installer relating to the terms of their employment.
PV Tech was unable to reach Vivint for comment in time for publication.