On Monday America’s financial paper of record accused America’s largest independent solar-energy company of manipulating key statistics in the months preceding its IPO release. The WSJ beat the SEC to the punch with the announcement of the results of their own investigation into Sunrun’s reporting practices. The WSJ has alleged that in August of 2015 Sunrun encouraged its managers to delay reports of hundreds of contract cancellations. If this negative information had been reported, it presumably would have dragged down the company’s sales metrics and significantly decreased the IPO’s valuation.

Installing a concentrating solar power system in Gila Bend, Arizona. The curved mirrors are tilted toward the sun, focusing sunlight on tubes that run the length of the mirrors. The reflected sunlight heats a fluid flowing through the tubes. The hot fluid then is used to boil water in a conventional steam-turbine generator to produce electricity. | Photo by Dennis Schroeder.

The major players in the solar energy market have been plagued with financial woes as California which is, by volume the largest solar market in the US, has seen a dramatic slowing in growth in recent years. This has contributed to a number of bankruptcies in the solar sector and helped send Sunrun’s price plummeting to under $5.00 a share. This is a decrease of nearly 2/3s from the IPO price of $14.00 a share. The SEC suspects Sunrun is not alone in this practice and is investigating Solar City for similar practices.

The story is substantiated by several former Sunrun managers. Four ex-Sunrun managers are on record stating there was substantial internal pressure to push as many deals through as possible in the run-up to the IPO and avoid reporting any cancellations taking place. This despite the fact that according to a source named in the article that as many as 40% of sales were canceled during the grace period allotted by the company after installation.

Lynn Jurich and Edward Fenster, who are both co-founders and prominent board members of Sunrun did provide a statement to the Wall Street Journal. However, the statement did not directly address the allegations that the pair had overseen a managerial culture which intentionally deceived investors.