Boston, MA 03/31/2014 (wallstreetpr) – The America based provider of energy services, SolarCity Corporation (NASDAQ:SCTY) has initiated and made investment in many projects. However, it seems that all is not well at the company’s side. SolarCity is facing tough winds from litigation front and un-expected hurdles in piloting its projects. This might cause a stir in the market having impact on the growth of the company.
Class action suit against SolarCity
Recently, on March 28, 2014 Pomerantz LLP has filed a class action suit against SolarCity and its officials for alleged violation of laws. The action seeks to obtain damages from SolarCity for violation of Federal Securities law. It pointed out the falsifying, deceptive and misleading statements regarding the compliance and business operation of the company. This poses serious question as to the veracity of the matter. The Litigations and claims in the later run would be crucial in determining the fate of the company.
Home battery project in deep waters
SolarCity Corporation (NASDAQ:SCTY) is facing hurdles in executing its brainchild project of home battery utility. It has potential to revolutionize the experience of customers and the energy industry. The company’s plan was to link batteries to rooftop panels during the daytime for using it at nighttime. This posed potential threat to utilities companies in California and thus they are creating hurdles in applications for grid interconnections. The utilities companies are ready to install the setup but are charging arbitrary hefty fee that is leading to falling apart of the project. Thus, Solar City is finding it difficult to continue with the project and experiment.
Narrow down of losses
The company finally came up with its 4Q2013 bottom line results. The company recorded loss of 46%/share, narrower than $1.10/share in preceding year. The company on a GAAP basis recorded 28cents/share profit with a loss of $1.30 in the preceding year.
Thus, SolarCity Corporation (NASDAQ:SCTY)’s figure indicates the business growth, strategy and innovations. However one needs to wait for the result of the lawsuit and solutions of the ambitious project before jumping to a conclusion.