The law firm Kirby McInerney LLP has issued a reminder to investors concerning a class action lawsuit filed in the U.S. District Court for the Southern District of New York on behalf of individuals who acquired securities of Sunnova Energy International Inc. during the period from February 25, 2020, to December 7, 2023, inclusive, referred to as “the Class Period.”
Investors have until April 16, 2024, to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Lawsuit Details
In September 2023, Sunnova announced a significant development – the company had entered into a $3.0 billion partial loan guarantee agreement with the U.S. Department of Energy’s Loan Programs Office (“LPO”).
This agreement aimed to support solar loans originated by Sunnova under a newly established solar loan channel named Project Hestia (the “LPO Loan”).
Sunnova expressed its expectation that Project Hestia would “provide disadvantaged homeowners and communities with increased access to clean, flexible power via Sunnova services by indirectly and partially guaranteeing the cash flows associated with consumers’ loans.”
However, events unfolded that cast doubt on Sunnova’s practices and intentions. On November 22, 2023, the Washington Free Beacon published an article titled “Biden Admin Gave $3 Billion Loan to Solar Company Accused of Scamming Elderly.”
The article highlighted consumer complaints against Sunnova, ranging from maintenance delays to alleged predatory sales tactics targeting elderly homeowners.
This negative publicity escalated further on December 8, 2023, when Representative Cathy McMorris Rodgers, Chair of the U.S. House Committee on Energy and Commerce, and Senator John Barrasso, ranking member of the U.S. Senate Committee on Energy and Natural Resources, sent a letter to the Department of Energy and Sunnova seeking information related to the LPO Loan and Project Hestia in response to the “disturbing” reports regarding the Company.
Following this news, Sunnova’s share price experienced a significant decline of $2.00 per share, or approximately 16.12%, dropping from $12.41 per share on December 7, 2024, to close at $10.41 on December 8, 2028.
Read More: Chemours Faces Executive Misconduct and Financial Implications
Allegations in the Lawsuit
The class action lawsuit alleges that Sunnova made materially false and misleading statements regarding the Company’s business, operations, and prospects during the Class Period. Specifically, the lawsuit contends that:
- Sunnova engaged in predatory business practices against disadvantaged homeowners and communities, contrary to the stated goals of Project Hestia.
The aforementioned conduct exposed Sunnova to a heightened risk of regulatory and governmental scrutiny, as well as significant reputational and financial harm.
As a result, Sunnova’s public statements were materially false and misleading throughout the Class Period.
The lawsuit seeks to represent shareholders who acquired Sunnova securities during the Class Period and aims to recover damages for alleged violations of federal securities laws.
Also Read: ACCO Brands: An Undervalued Player in the Consumer and Business Products Sector
Proposed Way Forward
Investors who believe they may be eligible to participate in the class action lawsuit are encouraged to contact Kirby McInerney LLP for further information and assistance.
The firm is available to provide guidance on the legal process and represent eligible investors in seeking recovery for potential losses incurred due to the alleged misconduct by Sunnova during the Class Period.
Read Next: Aditxt Inc. Focuses on Expanding its Portfolio in 2024
DISCLAIMER
You should read and understand this disclaimer in its entirety before joining or viewing the website or email/blog list of SmallCapStocks.com (the “Publisher”). The information (collectively the “Advertisement”) disseminated by email, text or other method by the Publisher including this publication is a paid commercial advertisement and should not be relied upon for making an investment decision or any other purpose. The Publisher is engaged in the business of marketing and advertising the securities of publicly traded companies in exchange for compensation. The track record, gains, upside, and/or losses mentioned in the Advertisement, if any, should not be considered as true or accurate or be the basis for an investment. The Publisher does not verify the accuracy or completeness of any information included in the Advertisement. While the Publisher does not charge for the SMS service, standard carrier message and data rates may apply. To unsubscribe from receiving promotional text messages to your phone sent via an autodialer, using your phone reply to the sender’s phone number with the word STOP or HELP for help.
The Advertisement is not a solicitation or recommendation to buy securities of the advertised company. An offer to buy or sell securities can be made only by a disclosure document that complies with applicable securities laws and only in the states or other jurisdictions in which the security is eligible for sale. The Advertisement is not a disclosure document. The Advertisement is only a favorable snapshot of unverified information about the advertised company. An investor considering purchasing the securities, should always do so only with the assistance of his legal, tax and investment advisors. Investors should review with his or her investment advisor, tax advisor or attorney, if and to the extent available, any information concerning a potential investment at the web sites of the U.S. Securities and Exchange Commission (the "SEC") at www.sec.gov; the Financial Industry Regulatory Authority (the "FINRA") at www.FINRA.org, and relevant State Securities Administrator website and the OTC Markets website at www.otcmarkets.com. The Publisher cautions investors to read the SEC advisory to investors concerning Internet Stock Fraud at www.sec.gov/consumer/cyberfr.htm, as well as related information published by the FINRA on how to invest carefully. Investors are responsible for verifying all information in the Advertisement. As an advertiser, we do not verify any information we publish. The Advertisement should not be considered true or complete.
The Publisher does not offer investment advice or analysis, and the Publisher further urges you to consult your own independent tax, business, financial and investment advisors concerning any investment you make in securities particularly those quoted on the OTC Markets. Investing in securities is highly speculative and carries an extremely high degree of risk. You could lose your entire investment if you invest in any company mentioned in the Advertisement. You acknowledge that we are not an investment advisory service, a broker-dealer or an investment adviser and we are not qualified to act as such. You acknowledge that you will consult with your own independent, tax, financial and/or legal advisers regarding any decisions as to any company mentioned here. We have not determined if the Advertisement is accurate, correct or truthful. The Advertisement is compiled from publicly available information, which include, but are not limited to, no cost online research, magazines, newspapers, reports filed with the SEC or information furnished by way of press releases. Because all information relied upon by us in preparing an advertisement about an issuer comes from a public source, it is not reliable, and you should not assume it is accurate or complete.
By your subscription to our profiles, the viewing of this profile and/or use of our website, you have agreed and acknowledged the terms of our full disclaimer and privacy policy which can be viewed at the following link: www.SmallCapStocks.com/Disclaimer and www.SmallCapStocks.com/Privacy-Policy
By accepting the Advertisement, you agree and acknowledge that any hyperlinks to the website of (1) a client company, (2) the party issuing or preparing the information for the company, or (3) other information contained in the Advertisement is provided only for your reference and convenience. The advertiser is not responsible for the accuracy or reliability of these external sites, nor is it responsible for the content, opinions, products or other materials on external sites or information sources. If you use, act upon or make decisions in reliance on information contained in any disseminated report/release or any hyperlink, you do so at your own risk and agree to hold us, our officers, directors, shareholders, affiliates and agents harmless. You acknowledge that you are not relying on the Publisher, and we are not liable for, any actions taken by you based on any information contained in any disseminated email or hyperlink.
Kris is a finance consultant, content marketer, and speaker specializing in helping brands and business owners navigate complex concepts and decisions. Since earning her Finance and Accounting degree, Kris has spent over half a decade writing about financial and technological concerns of brands spanning different life cycles.
