Vivint Solar, Inc. (VSLR) Accused of Forging Customer Contracts
According to the class action complaint against the company for alleged violations of the Securities Exchange Act of 1934, in Vivint’s 2018 and 2019 financial results, the Company highlighted increases in its gross retained value, with costs per Watt increasing from $3.22 in 1Q 2018 to $3.56 in 2Q 2019. Contrary to its auspicious representations, Vivint failed to disclose its engagement in fraudulent business practices, including forging customer contracts, which resulted in materially overstated reports regarding sales and megawatts installed, and left the Company vulnerable to potential regulatory scrutiny. On September 27, 2019, Marcus Aurelius Value published a report revealing “28 undisclosed lawsuits… specifically allege Vivint forged customer contracts or otherwise engaged in fraud or deception.” On this news, Vivint’s share price fell to $6.55 per share, a 25% decline from its class period high of $8.69.
