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What: Shares of SunEdison Inc. jumped as much as 29% today after reaching a settlement on a lawsuit.
So what: SunEdison announced this morning that it has reached a settlement over a lawsuit from Latin America Power Holding, a company it was supposed to acquire before backing out. Latin America Power will get $28.5 million to drop all lawsuits and TerraForm Power will not pay anything as part of the agreement.
This lifts one cloud over SunEdison because Latin America Power's lawsuit put another potential liability on an already stressed balance sheet.
Now what: Fundamentally, this doesn't change SunEdison's future and only takes one distraction off the table. The bigger concerns should be the delayed 2015 Securities and Exchange Commission filing that would show the company's finances and the deteriorating balance sheet.
This stock seems to pop or drop every day, and until we see evidence that SunEdison can run a sustainable business that makes a profit, I'll remain skeptical about its future.
The article Why SunEdison Inc.'s Shares Surged 29% Higher Today originally appeared on Fool.com.
Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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