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Four law firms are investigating whether SunEdison ( SUNE ) yield company TerraForm Power ( TERP ) violated securities laws in conjunction with its annual report filing delays. Two say their probes concern the fraud and insider trading sections of the Securities and Exchange Act of 1934. TerraForm Power is facing a series of potential investor class action lawsuits and could be delisted from the Nasdaq if it doesn’t come into compliance. The SunEd yieldco has until May 16 to regain compliance or submit a plan to do so, though it could be granted an extension until Sept. 12 . In midday trading Thursday, TerraForm Power stock was trading down more than 6%. SunEdison was down more than 3% on the stock market today . Shares closed down 7.9% and flat, respectively, on Wednesday. Goldberg Law Firm said it is investigating whether TerraForm Power violated securities rules by issuing “misleading” information to investors and cites “claims of potential misrepresentations” by the company. Its investigation is focusing on Terraform’s Feb. 29 announcement that it would delay filing its form 10-K annual report with the SEC. Rosen Law Firm; the Pomerantz law firm; and Bronstein, Gewirtz & Grossman launched TerraForm Power investigations too. On Feb. 29, SunEdison said it needed more time to wrap an audit into its liquidity stance, stemming from allegations of financial misconduct by former executives. Early Wednesday, the firms again delayed their 10-Ks, but SunEd said it found no “material weaknesses” thus far. TerraForm Power blamed its parent company for the holdup, saying its accounting systems are tied to SunEd’s. On this news, TerraForm Power “fell sharply during intraday trading on March 16,” Rosen Law Firm said in a press release. “Rosen Law Firm is investigating a potential class action lawsuit to recover losses suffered by TerraForm Power investors,” the firm wrote. Scalper1 News
Scalper1 News