Robbins Arroyo LLP: Sunrun Inc. (RUN) Misled Shareholders According to a Recently Filed Class Action
Shareholder rights law firm Robbins Arroyo LLP announces that a class action complaint was filed against Sunrun Inc. (NASDAQGS: RUN) in the U.S. District Court
for the Northern District of California. The plaintiff brings the complaint on behalf of all purchasers of Sunrun securities
pursuant to Sunrun's August 5, 2015 initial public stock offering ("IPO") for alleged violations of the Securities Act of 1933.
Sunrun engages in the design, development, installation sale, ownership, and maintenance of residential solar energy systems in the
United States.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/sunrun-inc-may-2016
Sunrun Accused of Overcharging Its Customers
According to the complaint, on August 5, 2015, Sunrun priced its IPO at $14.00 per share, selling 17.9 million shares of Sunrun
common stock and raising $250.6 million in gross proceeds. The complaint alleges that the registration statement filed in
connection with Sunrun's IPO was misleading because the company claimed to provide homeowners with predictable pricing for solar
energy that is insulated from rising retail electricity prices and emphasized that it sold customer-friendly solar service
offerings with customized configurations and pricing. However, the complaint alleges that the company was charging well above
wholesale rates to its solar customers and was suffering from negative perceptions as customers learned the true facts.
The registration statement further claimed that Sunrun receives 20 years of predicable cash flows from its 20-year contracts
with its customers, when in reality the company's net metering policies were under intense regulatory scrutiny and likely to make
it difficult for Sunrun to get customers to agree to sign 20-year contracts. Sunrun stated it focused its resources on markets with
favorable policy environments, when it actually had committed immense resources to Nevada, where net metering was being attacked in
the Nevada Public Utilities Commission. On January 7, 2016, Sunrun admitted it was ceasing all operations in Nevada and that
residential solar growth would consequently decline from 76% in 2015 to just 40% in 2016. Sunrun's stock price has since plummeted
and now trades at $7.33 per share, or about 50% of the price the stock was sold at in the IPO.
Sunrun Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R.
Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion
of value for themselves and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.
Robbins Arroyo LLP
Darnell R. Donahue
619-525-3990 or Toll Free 800-350-6003
DDonahue@robbinsarroyo.com
www.robbinsarroyo.com
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