The Shareholders Foundation announces that an investigation on behalf of former employees of Vivint Solar Inc (NYSE:VSLR), who acquired NYSE:VSLR shares in the initial public offering (“IPO”) or pre-IPO and currently hold any of those NYSE:VSLR, concerning potential Breaches of Fiduciary Duty was initiated
Former employees of Vivint Solar Inc (NYSE:VSLR), who acquired NYSE:VSLR shares in the IPO or pre-IPO and currently hold any of those NYSE:VSLR, have certain options and should contact the Shareholders Foundation, Inc. at mail(at)shareholdersfoundation.com or call +1(858) 779 – 1554.
According to the investigation by a law firm employees of Vivint Solar Inc , who acquired NYSE:VSLR shares in the IPO or pre-IPO and currently hold any of those NYSE:VSLR , may be eligible to file a complaint for breaches of fiduciary duty to them.
A lawsuit was filed against Vivint Solar Inc over alleged securities laws violations. The plaintiff alleges that the defendants violated Federal Securities Laws in connection with certain allegedly false and misleading statements made between October 1, 2014 and November 10, 2014..
On or about September 30, 2014, Vivint Solar Inc and the underwriters announced the pricing of its initial public offering (“IPO”) at $16.00 per share, and on October 1, 2014 filed the final Prospectus, which forms part of the Registration Statement for the IPO with the Securities and Exchange Commission.
The plaintiff claims that the Registration Statement for the IPO was negligently prepared and, as a result, contained untrue statements of material facts or omitted to state other facts necessary to make the statements made not misleading.
More specifically, the plaintiff alleges that under the rules and regulations governing the preparation of the Registration Statement, Vivint Solar Inc was required to disclose at the time of the IPO that ownership trends in the residential solar industry had changed from long-term leasing to financing, that demand for long-term leases had declined, and that growth in the Company’s operating expenses in the third quarter of 2014 had significantly outstripped growth in revenue, resulting in much weaker sales trends and significantly larger net losses than the market had been led to expect. The plaintiff claims that the Registration Statement contained no such disclosures.
Then on November 10, 2014, Vivint Solar Inc announced its third quarter 2014 financial results. While Vivint Solar Inc reported that its third quarter Revenue rose from $2.27 million in 2013 to $8.33 million in 2014 its third quarter Net Loss increased from $14.99 million in 2013 to $51.69 million in 2014. Vivint Solar Inc also issued its guidance for the fourth quarter in 2014. Shares of Vivint Solar Inc (NYSE:VSLR) declined to as low as $7.90 per share on December 17, 2014.
On January 9, 2015, NYSE:VSLR shares closed at $8.51 per share.
Those who purchased shares of Vivint Solar Inc (NYSE:VSLR) have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com