The complaint alleges that the company and certain of its officers and directors violated the Securities Act of 1933 in connection with Vivint's initial public stock offering on October 1, 2014. Vivint provides distributed solar energy to residential customers in Arizona, California, Hawaii, Maryland, Massachusetts, New Jersey, and New York.
Vivint Is Accused of Filing a Misleading Registration Statement
According to the complaint, Vivint's Registration Statement filed in conjunction with the company's October 1, 2014 IPO contained inaccurate statements of material fact. Specifically, the complaint alleges that Vivint knew, but failed to disclose, that the company relied on a long-term leasing business model that was in sharp decline prior to the IPO, which negatively impacted demand for Vivint's long-lease sales. Further, Vivint failed to disclose that the company experienced a significantly higher net loss in the third quarter 2014 earnings, which ended one day prior to the IPO, as the result of higher operating expenses unmatched by revenue growth. As a result, Vivint made false and/or misleading statements and failed to disclose material adverse facts about the company's financial prospects, and/or failed to disclose the truth regarding the company's financial condition.
Vivint 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.
