Sunnova Energy International Inc. Litigation Report

Case Introduction

Trindade v. Sunnova Energy International Inc., et al 4:24-cv-00569

On February 16, 2024, investors sued Sunnova Energy International Inc. (“Sunnova” or the “Company”) in United States District Court, Southern District of Texas.

Plaintiffs in the federal securities class action allege that they acquired Sunnova stock at artificially inflated prices between February 25, 2020 and December 7, 2023 (the “Class Period”). They are now seeking compensation for financial losses incurred upon public revelation of the Company’s alleged misconduct during that time. To learn whether you may be eligible for a recovery under this class action, go to: https://zlk.com/pslra-1/sunnova-lawsuit-submission-form?wire=31

Summary of the Allegations

Company Background

Sunnova (NYSE:NOVA) is a self-described industry-leading adaptive energy services company.

As such, the Company claims that it concentrates its efforts on making clean energy “more accessible, reliable and affordable for homeowners and businesses.” The Company also says it provides solar panels with and without batteries, EV chargers, generators and more.

According to its website, the Company was founded in Houston in 2012. The Company’s website also indicates that Sunnova now has more than 400,000 customers, and more than dealers, sub-dealers and builders in 50 states and territories.

Summary of Facts

Sunnova and two of its senior officers (the “Individual Defendants”) are now accused of deceiving investors by lying and withholding important information about the Company’s business practices and compliance policies during the Class Period.

Specifically, they are accused of omitting truthful information about certain conduct from SEC filings and related material. By knowingly or recklessly doing so, they allegedly caused Sunnova stock to trade at artificially inflated prices during the time in question.

The truth came out in a series of events that happened on November 22, 2023 and December 8, 2023. First, the Washington Free Beacon published an article stating that “that several consumer complaints had been brought against the Company for issues ranging from maintenance delays to predatory sales tactics used against elderly homeowners.”

Then, Representative Cathy McMorris Rodgers (“Rodgers”), Chair of the U.S. House Committee on Energy and Commerce (the “House Energy Committee”), and Senator John Barrasso (“Barrasso”), ranking member of the U.S. Senate Committee on Energy and Natural Resources (the “Senate Energy Committee”), sent a letter to the DOE and Sunnova seeking information related to the LPO Loan and Project Hestia following the release of the ‘disturbing’ reports regarding the Company. Specifically, the letter requested additional information regarding the LPO’s awareness of and treatment of Sunnova’s allegedly predatory business practices.”

A closer look…

As alleged, the Company and/or Individual Defendants repeatedly made false and misleading public statements throughout the Class Period.

In an Annual Report filed with the SEC at the beginning of the Class Period, for example, Sunnova stated in relevant part: “Our solar service agreements are designed to offer the customer energy cost savings and bill stability relative to centralized utility prices, often resulting in an immediate reduction in the customer’s overall utility bill, with little or no upfront costs.”

Then, in a February 24, 2021 press release, the Company’s CEO (an Individual Defendant) stated in relevant part: “Sunnova is well positioned to navigate the current market environment and to lead a decarbonized and decentralized energy transition while providing our customers with a better energy service at a better price.”

Finally, in an April 20, 2023 press release, Sunnova stated in relevant part: “Sunnova [. . .] today announced a conditional commitment by the [LPO] to provide an up to $3.0 billion partial loan guarantee, which equates to a 90% guarantee of up to $3.3 billion of financing to support loans originated by Sunnova under a new solar loan channel named “Project Hestia. Project Hestia would provide disadvantaged individuals and communities with increased access to Sunnova services by indirectly and partially guaranteeing the cash flows associated with those consumers’ loans.”

Actions You May Take

If you have purchased the Company’s stock during the Class Period, you may join the class action as a lead plaintiff, remain a passive class member, or opt out of this litigation and pursue individual claims that may not be available to the class as a whole. To learn more about your options, go to: https://zlk.com/pslra-1/sunnova-lawsuit-submission-form?wire=31

NOTE: The deadline to file for lead plaintiff in this class action is April 16, 2024. You must file an application to be appointed lead plaintiff prior to this deadline in order to be considered by the Court.