Vivint Solar sues SunEdison over failed merger
Written By: Stratton Report
March 8, 2016
On March 8, Vivint Solar announced that it had sued SunEdison, Inc. over what it termed the willful breach of the merger agreement between the two companies. Among other things, Vivint Solar said it is seeking damages for the loss of benefits its stockholders had expected from the transaction.
Gregory Butterfield, President and CEO of Vivint Solar stated:
“SunEdison has willfully breached its obligations under the merger agreement and we intend to pursue Vivint Solar’s remedies vigorously.”
Vivint filed suit in the Court of Chancery of the State of Delaware.
According to Reuters , the merger, worth $2.2 billion when it was announced in July, had faced criticism from hedge funds and other investors and after the announcement of its termination, SunEdison’s stock rose as much as 33 percent to $2.53, while Vivint’s fell as much as 22.6 percent to a record low of $4.03.