A class action lawsuit was filed against Sunnova Energy International (NYSE:NOVA) on February 16, 2024. The plaintiffs (shareholders) alleged that they bought Sunnova stock at artificially inflated prices between February 25, 2020 and December 7, 2023 (Class Period) and are now seeking compensation for their financial losses. Investors who bought NOVA stock during that period can learn about joining the lawsuit here: https://zlk.com/pslra-1/sunnova-lawsuit-submission-form?wire=16
Houston-based Sunnova offers several clean energy solutions, including solar, battery storage, energy control, and management technologies. The company boasts of serving over 419,000 customers, over 200,000 dealers, sub-dealers, and builders across 50 states and territories.
The plaintiffs maintain that Sunnova and two of its senior officers have deceived investors by repeatedly lying and withholding material information about the company’s business practices and compliance policies during the Class Period.
The information became clear in a series of events that occurred on November 22, 2023 and December 8, 2023. A report by the Washington Free Beacon stated that customers have complained about maintenance delays and predatory sales tactics employed against elderly homeowners. Following this, an official letter was sent to the Department of Energy (DOE) and Sunnova from the regulatory bodies governing the Energy sector. The letter sought clarity on the LPO (Loan Programs Office) and Project Hestia following “disturbing” reports about Sunnova Energy.
In the past, Sunnova repeatedly stated that its solar service agreements were designed to reduce customers’ energy bills relative to centralized utility prices. Moreover, the defendants claimed previously that the company is well-positioned to benefit from the decarbonization energy transition while offering customers better services at better prices.
As per the class action lawsuit, Sunnova caused NOVA stock to trade at artificially inflated prices by knowingly and recklessly misleading investors about its business practices.
Notably, since December 8, 2023, NOVA stock has lost over 57%, and nearly 66% in the past year, causing massive losses to shareholders’ stock holdings.
