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Hannon Armstrong Sustainable Infrastructure Capital, Inc. Investigation - HASI

Case Summary

Investors who suffered a loss and would like to learn more, click here to contact us.

Robbins Geller Rudman & Dowd LLP has launched an investigation into potential violations of U.S. federal securities laws by Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE: HASI) focused on whether Hannon Armstrong and certain of its officers and directors made false and misleading statements and/or failed to disclose material information to investors.

If you have information that could assist in this investigation or if you are a Hannon Armstrong investor who suffered a loss and would like to learn more, please provide your information in the form on this page. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com.

THE COMPANY: With $9 billion in managed assets, Hannon Armstrong provides capital to companies in energy efficiency, renewable energy, and other sustainable infrastructure markets.

THE REVELATION: On July 12, 2022, Muddy Waters Capital released an investigative report concluding that Hannon Armstrong’s “accounting is so complex and misleading that its financial statements are effectively meaningless.”  Muddy Waters explained that Hannon Armstrong “misleadingly inflates [General Accepted Accounting Principles (‘GAAP’) earnings three ways: 1) Through a loophole in the arcana of accounting for renewables subsidies, [Hannon Armstrong] books non-cash unrealizable income relating to third parties’ tax credits that will be reversed; 2) [Hannon Armstrong] produces non-cash income by manipulating the discount rate it applies to residual assets to implausibly low levels, thereby inflating its gains on securitizations; and, 3) [Hannon Armstrong] books interest income from non-cash ‘Paid in Kind’ (‘PIK’) interest payments, which are essentially IOUs from stressed borrowers.”  Muddy Waters further concluded that Hannon Armstrong should have adjusted its GAAP income down by $362.7 million to a net loss of $235.4 million at the midpoint.

On this news, the price of Hannon Armstrong common stock fell by more than 19%.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases.  The Firm is ranked #1 on the 2021 ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors last year alone – more than triple the amount recovered by any other plaintiffs’ firm.  With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.

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