According to public records and the Los Angeles Times, energy developer SunEdison has filed for bankruptcy. The securities and investment fraud law firm Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments in SunEdison (NYSE: SUNE).
In a report published on May 4th, 2016, the LA Times stated that the US-based renewable energy company is in bankruptcy after shares “plunged 25%” between April 2015 and March 2016. Now, “the company faces a slew of lawsuits, including one from its own subsidiary claiming that SunEdison misappropriated $231 million, using it to pay off a loan instead of solar developments, as it had said it would.”
The Wall Street Journal additionally reported in March 2016 that the Securities and Exchange Commission is “investigating SunEdison’s disclosures to investors about how much cash the solar-power company had on hand as its stock price collapsed last year.” Specifically, investigators are looking into whether SunEdison overstated its liquidity last fall when it told investors it had more than $1 billion in cash.
Reportedly, SunEdison stated in a November earnings call that it had $1.4 billion in cash, though “people familiar with the matter said that $1.4 billion figure consisted largely of cash that SunEdison couldn’t access… The company had direct access to only a few hundred million dollars throughout September and October, and by November, the balance had dropped under $100 million, the people said.” Allegedly, the inaccessible cash was “trapped inside individual power projects and earmarked for construction or debt service.”
According to Wikipedia, SunEdison develops, builds, owns, and operates solar power plants and wind energy plants, and manufactures high purity polysilicon, monocrystalline silicon ingots, silicon wafers, solar modules, solar energy systems, and solar module racking systems. The company’s website states that it filed for Chapter 11 bankruptcy on April 21, 2016. SunEdison’s publicly-traded yieldcos, TerraForm Power (NASDAQ: TERP) and TerraForm Global (NASDAQ: GLBL), are not included in the bankruptcy filing.
If you or someone you know has complaints regarding investments in SunEdison (SUNE), call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 for a free consultation. You may be entitled to recover lost funds. All cases are taken on a contingency basis: Fitapelli Kurta only receives payment if and when you collect money. Time to file your claim may be limited, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.