Sunnova Energy International Inc.

On November 22, 2023, the Washington Free Beacon reported that several consumer complaints had been brought against Sunnova regarding issues ranging from maintenance delays to “scamming” and using predatory sales tactics against elderly homeowners.

Then, on December 8, 2023, members of the U.S. House Committee on Energy and Commerce and the U.S. Senate Committee on Energy and Natural Resources sent a letter to the U.S. Department of Energy and Sunnova seeking information following the release of “disturbing” reports regarding Sunnova’s allegedly predatory business practices.

On this news, Sunnova’s stock price fell $2.00, or 16.1%, to close at $10.41 per share on December 8, 2023, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Sunnova routinely engaged in predatory business practices against disadvantaged homeowners and communities, the same groups that Project Hestia was purportedly intended to benefit; (2) the foregoing conduct subjected the Company to a heightened risk of regulatory and/or governmental scrutiny, as well as significant reputational and/or financial harm; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.