ERISA Class Action Filed Against SunEdison

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A class action lawsuit filed today claims SunEdison and its board of directors and investment committee breached their fiduciary duty to stockholders in violation of the Employee Retirement Income Security Act of 1974 (ERISA). Filed in Missouri, the 66-page suit alleges that, over the last year, SunEdison went on “a shopping spree of increasingly imprudent and financially suspect” purchases of alternative energy companies. Plaintiffs allege these acquisitions burdened SunEdison with unstainable debt, resulting in an inability to generate revenue that’s set in motion the company’s “undeniable and inevitable” financial collapse.

The defendants allegedly allowed employees’ retirement savings plan to offer SunEdison stock as an investment option even after the fiduciaries knew or should have known that the stock was artificially inflated and the company was in a calamitous financial position. The proposed class includes stock owners who suffered losses due to investing his or her retirement plan in SunEdison stock.