Robbins Arroyo LLP: SunEdison, Inc. (SUNE) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed in the U.S. District Court for the Eastern District of Missouri. The complaint alleges that officers and directors of SunEdison, Inc. (NYSE: SUNE) violated the Securities Exchange Act of 1934 between June 16, 2015 and October 6, 2015, by making materially false and misleading statements about SunEdison’s business prospects. SunEdison develops, manufactures, and sells silicon wafers to the semiconductor industry.
SunEdison Accused of Scheming to Mislead Investors
According to the complaint, SunEdison misled investors by touting the company’s ability to sustain continued growth. Specifically, in 2014 and 2015, the company issued quarterly financial statements showing that it was increasing net sales and poised for growth. SunEdison continued to take on new debt to fund growth, and on June 16, 2015, announced it had signed a merger agreement to acquire Globeleq Mesoamerica Energy, stating “With this acquisition… we position ourselves to accelerate our performance and deliver attractive returns to our shareholders.” Just over a month later, on July 20, 2015, SunEdison announced it entered into another merger agreement with Vivint Solar, stating the merger would triple SunEdison’s value.
However, as SunEdison continued its acquisition binge, it became clear that the company was struggling. On August 6, 2015, SunEdison issued a press release announcing its financial results for the 2015 second quarter, reporting a loss of $263 million on $455 million of revenue. Further, its debt stood at $11 billion, including debt from several recent multi-billion dollar deals to acquire new wind and solar assets. On October 5, 2015, when it revealed that it was laying off 15% of its workforce and announced restructuring charges of $30 to $40 million for Q3 2015 through Q1 2016, the company could no longer hide its prior misstatements. On this news, SunEdison’s stock dropped from a high of $30.96 on June 16, 2015 to $8.69 per share on October 6, 2015, or a 72% drop.
SunEdison 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, or you can complete the form below and we will contact you directly.