Webb v. SolarCity

Wilson Sonsini Goodrich & Rosati represented SolarCity, as well as its former CEO and former CFO, in the matter

On March 8, 2018, the U.S. Court of Appeals for the Ninth Circuit affirmed the dismissal of a securities class action filed against SolarCity, a leader in full-service solar power systems. The case was filed following the announcement of a restatement of certain financial results by SolarCity, driven by an error in one of the formulas used to calculate how SolarCity accounted for certain costs of its solar systems.

After two previous dismissals, on August 9, 2016, the U.S. District Court for the Northern District of California dismissed all claims with prejudice, finding that the plaintiffs had not satisfied the requirement that they allege sufficient facts to raise a strong inference of scienter. On March 8, 2018, the Ninth Circuit published an opinion that affirmed the district court’s dismissal, holding that the plaintiff failed to adequately plead the necessary scienter.

SolarCity Corporation offers solar power energy services. The Company, led by provides designing, financing, installation, monitoring, and energy efficiency services.

The WSGR team representing SolarCity in the matter included partners Ignacio Salceda (Picture) and Benjamin Crosson, Of Counsel Cheryl Foung, and associate Evan Seite.

Involved fees earner: Ignacio Salceda – Wilson Sonsini Goodrich & Rosati; Benjamin Crosson – Wilson Sonsini Goodrich & Rosati; Cheryl Foung – Wilson Sonsini Goodrich & Rosati; Evan Seite – Wilson Sonsini Goodrich & Rosati;

Law Firms: Wilson Sonsini Goodrich & Rosati;

Clients: SolarCity Corporation ;

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Author: Ambrogio Visconti