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Solar City Scams, Inflated The Company’s Value By Fabricating Sales Records

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Solar City Scams

Solar City Scams, Inflated The Company’s Value By Fabricating Sales Records: A new lawsuit claims SolarCity wrongfully fired three employees who exposed alleged sales practises used to justify a “unreasonably high valuation” of the solar energy services company. The solar panel maker in San Mateo, California, allegedly discriminated against employees by failing to address sexual harassment and replacing an older worker with a younger one.

Solar City Scams, Inflated The Company’s Value By Fabricating Sales Records

Solar City Scams

Incident | Solar City Scams

The lawsuit, filed on July 25 in San Diego Superior Court, also targets Tesla, which acquired SolarCity as a subsidiary in November 2016. Elon Musk, the billionaire tech entrepreneur, is Tesla’s CEO.

There are no specific damages sought in the lawsuit. The civil action file days before Tesla’s schedule August 1 earnings report.

Three former employees lost their jobs when the company acquired SolarCity. As well as discontinue door-to-door energy sales. “Any other reason they are eliminate is false,” the company says.

Emails and voicemails left for Makerem & Associates attorney Jean-Paul Le Clercq went unanswered.

Le Clercq sued on behalf of Andrew Staples, Robert Ray, and Anqunetta White. All of whom sold SolarCity’s solar panels.

They were on the same work team that was “pretextually terminated” in late May 2017, the lawsuit claims.

Fake Potential

The now-ex-employees alleged that other unnamed workers created “fake potential sales accounts” that were “disseminated to investors and shareholders to justify an unreasonable valuation of SolarCity.”

The former employees also claimed other workers signed contracts for SolarCity and Tesla “for personal gain.”

The three allegedly informed numerous managers. The court complaint says the employees complained to the “Defendants’ CEO,” but does not name Musk.

On or about May 31, 2017, defendants allegedly fired plaintiffs for no reason, rather than address and/or remedy any illegal conduct.

Investigate

Tesla said the false sales record claim “investigate and find to be incorrect.” We confirm the customer has sign a valid contract.

Separately, Staples claimed he is “continually harass due to his sexual orientation” by a supervisor from another SolarCity department. According to the lawsuit, Staples complain to numerous managers, including Musk, but no action was taken.

Tesla said Staples “never complain about sexual orientation harassment from his supervisor.”

Ray had a “strong work performance” and is not discipline by SolarCity, the lawsuit claims. Ray, 59, is allegedly tell his job is being eliminate when he is fire.

The lawsuit claims Ray is “replace by a significantly younger individual who is under 30 years old.”

Fail In Satisfying Their Expectations

The three former SolarCity employees claim they worked more than eight hours per day. 40 hours per week, without receiving overtime pay. The lawsuit claims Solar City failed to provide meal and rest breaks.

Tesla said White’s complaint about not being able to properly record overtime was “unsubstantiated.”

“Tesla is absolutely against any form of discrimination, harassment. Either unfair treatment of any kind by or against anyone,” the company says. The facts simply do not hold up the plaintiffs’ claims.”

In a research note published Sunday, UBS analyst Colin Langan warned. That Tesla’s stock could drop by over 30% in the next year.

Langan based his forecast on Tesla’s inability to make money in 2019 and need for additional capital.

He also predict Tesla’s second-quarter earnings report, due after the close of markets on Wednesday, would be weaker than expected.

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