The law firm of Kessler Topaz Meltzer & Check, LLP announces that a shareholder class action lawsuit has been filed against SunEdison, Inc. on behalf of purchasers of the Company’s securities between June 16, 2015 and October 6, 2015, inclusive (the “Class Period”).SunEdison finances, builds, owns and operates various solar and wind power plants. As part of SunEdison’s business, the Company 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 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. Specifically, the complaint alleges that the defendants misled investors “by creating the picture that the Company 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.
A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class in the action. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check.