The Wall Street Journal: SunEdison confirms subpoena, SEC investigation

SunEdison Inc. said the U.S. Justice Department is looking into issues including financing activities related to a canceled acquisition and confirmed the company had received an inquiry from the Securities and Exchange Commission.

The Wall Street Journal reported Monday that the SEC is investigating the solar-power company’s disclosures to investors about how much cash it had on hand as its stock price collapsed last year.

Read: CEO of SunEdison’s two spinoffs abruptly leaves

SunEdison SUNE, -7.83%   said it received a subpoena Monday from the Justice Department seeking information and documentation on financing activities related to a planned $1.9 billion purchase of residential-rooftop installer Vivint Solar Inc. VSLR, +1.15%  

The Vivint deal was terminated earlier this month after banks balked at providing the funding, the Journal reported.

Also read: SunEdison stock sinks below $1 following warning of bankruptcy risks

SunEdison said in a filing that the Justice Department is also looking into alleged wrongdoing by “a former non-executive employee” in connection with Vivint termination negotiations, as well as intercompany transactions involving SunEdison and its yield cos TerraForm Power Inc. TERP, +3.22%   and TerraForm Global Inc. GLBL, +9.17%  

An expanded version of this report appears on WSJ.com.

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