NEW YORK, Nov. 26, 2014 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Vivint Solar, Inc. ("Vivint" or the "Company") (NYSE:VSLR) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, is on behalf of a class consisting of all persons or entities who purchased Vivint securities between October 1, 2014 and November 10, 2014, inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased Vivint securities during the Class Period, you have until January 20, 2015 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Vivint provides distributed solar energy to residential customers in Arizona, California, Hawaii, Maryland, Massachusetts, New Jersey, and New York. It installs and owns solar energy systems through long-term customer contracts. The company also offers photovoltaic installation software products and devices. As of June 30, 2014, its solar energy systems had a cumulative capacity of 129.7 megawatts covering approximately 21,900 homes in 7 states. The company was formerly known as V Solar Holdings, Inc. and changed its name to Vivint Solar, Inc. in April 2014.
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 Securities and Exchange Commission ("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.
On this news, shares of Vivint fell $4.58 per share, or approximately 28.62%, from the IPO price to close at $11.42 per share on November 11, 2014.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.