Sunworks Investor Sues Directors to Block Upcoming Peck Merger

Board members of Sunworks Inc. misrepresented the company’s financial situation in the lead up to the solar power company’s expected acquisition by Peck Co. Holdings, according to a shareholder lawsuit filed in Delaware Chancery Court.

Gustavo Vieyra’s proposed class action seeks a court order blocking Sunworks’ upcoming merger with Peck, which Vieyra says forces investors to trade in their Sunworks shares at a discount of more than 40%. Board members convinced shareholders to approve the transaction by filing incomplete and misleading reports that didn’t properly contextualize how the Covid-19 market downturn affected Sunworks’s stock price, Vieyra claims.

The proposed merger ...