Vivint Solar, Inc.
ROBBINS GELLER RUDMAN & DOWD LLP FILES CLASS
ACTION SUIT AGAINST VIVINT SOLAR, INC.
New York – November 21, 2014 – Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/vivint/) today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Vivint Solar, Inc. (“Vivint”) (NYSE:VSLR) common stock between the October 1, 2014 date of Vivint’s initial public offering (“IPO”) and November 10, 2014.
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/vivint/. Any member of the putative 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.
The complaint charges Vivint, certain of its officers and directors, its controlling shareholder and the underwriters of its IPO with violations of the Securities Act of 1933. Vivint is a residential solar energy unit installer that leases solar energy systems to residential homeowners pursuant to long-term power purchase agreements and leases.
On or about September 30, 2014, Vivint and the underwriters priced the IPO, and on October 1, 2014 filed the final Prospectus, which forms part of the Registration Statement for the IPO (collectively, the “Registration Statement”), with the SEC. The IPO was successful for the Company and the underwriters, with Vivint issuing and selling 20.6 million new shares of Vivint common stock to the public at $16 per share, raising approximately $329.6 million in gross proceeds.
The complaint alleges 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. According to the complaint, under the rules and regulations governing the preparation of the Registration Statement, Vivint 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 Registration Statement contained no such disclosures. Vivint common stock currently trades at below $11 per share, a more than 32% decline from the IPO price.
Plaintiff seeks to recover damages on behalf of all purchasers of Vivint common stock pursuant and/or traceable to the Registration Statement issued in connect with Vivint’s October 1, 2014 IPO (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller, with 200 lawyers in ten offices, represents U.S. and international institutional investors in contingency-based securities and corporate litigation. The firm has obtained many of the largest securities class action recoveries in history, including the largest securities class action judgment. Please visit http://www.rgrdlaw.com for more information.
Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman, 800-449-4900
David A. Rosenfeld