Sunnova(US:NOVA) GlobeNewswire News Roomยท2024-06-20 01:00Core Viewpoint - Sunnova Energy International Inc. is facing scrutiny due to allegations of predatory business practices against elderly homeowners, which has led to a class action complaint and a significant drop in stock price following these revelations [3][6][7]. Company Overview - Sunnova provides energy as a service in the U.S., offering electricity, operations and maintenance, monitoring, repairs, equipment upgrades, and diagnostics services. As of October 2023, the company serves over 386,000 customers with its residential solar energy systems [2]. Recent Developments - On November 22, 2023, an article highlighted that the Biden administration provided a $3 billion loan to Sunnova, which has been accused of scamming elderly customers [3]. - A class action complaint was filed against Sunnova on February 16, 2024, concerning potential breaches of fiduciary duties by the board of directors during the class period from February 25, 2020, to December 7, 2023 [5]. Allegations and Impact - The allegations against Sunnova include engaging in predatory business practices, which have subjected the company to increased regulatory scrutiny and reputational harm. The company's public statements have been deemed materially false and misleading [6]. - Following the news of these allegations, Sunnova's stock price fell by $2.00 per share, or 16.12%, closing at $10.41 on December 8, 2023 [7]. Government Inquiry - On December 8, 2023, U.S. House and Senate committee leaders sent a letter to the Department of Energy and Sunnova, seeking information regarding the loan and Project Hestia in light of the disturbing reports about the company's practices [10]. Financial Support - In September 2023, Sunnova entered into a $3 billion partial loan guarantee agreement with the U.S. Department of Energy to support solar loans under Project Hestia, aimed at providing disadvantaged homeowners with access to clean power [9].