August 11, 2015 (Shareholders Foundation) - An investor who currently holds shares of Vivint Solar Inc (NYSE:VSLR), filed a lawsuit in effort to halt the proposed takeover of Vivint Solar Inc by SunEdison, Inc is unfair to NYSE:VSLR stockholders.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:VSLR stockholders by agreeing to sell Vivint Solar too cheaply via an unfair process to SunEdison, Inc.

On July 20, 2015, SunEdison, Inc. (NYSE: SUNE), Vivint Solar (NYSE: VSLR) and TerraForm Power, Inc. (together with its subsidiaries, TerraForm Power) (Nasdaq: TERP), announced that SunEdison and Vivint Solar have signed a definitive merger agreement pursuant to which SunEdison will acquire Vivint Solar for approximately $2.2 billion, payable in a combination of cash, shares of SunEdison common stock and SunEdison convertible notes. Under the merger agreement, Vivint Solar stockholders will receive $16.50 per share, consisting of $9.89 per share in cash, $3.31 per share in SunEdison stock, and $3.30 per share in SunEdison convertible notes.

However, the plaintiff claims that the proposed consideration NYSE:VSLR shareholders will receive is grossly inadequate and undervalues Vivint Solar Inc. Indeed, at least one analyst has set the high target price for NYSE:VSLR shares at $22.00 per share. Furthermore, Vivint Solar Inc reported that its annual Total Revenue rose from $6.17 million to $25.26 million in 2014.

In addition, the plaintiff claims that the process is also unfair to NYSE:VSLR stockholders. Indeed, 313 Acquisition LLC, which owns approximately 77 percent of the outstanding Vivint Solar shares, has already entered into a voting agreement with SunEdison pursuant to which 313 Acquisition LLC has agreed, among other things, to vote in favor of the adoption of the merger agreement, subject to certain termination events, including, among others, termination of the merger agreement.