Vivint Smart Home ( NYSE: VVNT ) fell 5.8% after a North Carolina jury ruled the company must past $190 million in damages over a lawsuit filed by CPI Security Systems in 2020 related to alleged historical practices by certain Vivint sales personnel.
A jury on Friday ruled in favor of CPI Security Stems and awarded the company $49.7 million in compensatory damages and $140 million in punitive damages, according to an 8-K filing T uesday from Vivint Home Solar ( VVNT ).
Vivint Smart ( VVNT ) said it believes the verdict is not "legally or factually supported" and intends to pursue post-judgement remedies and file an appeal and will continue to examine all legal options, according the filing.
The legal judgement against Vivint Smart ( VVNT ) comes after NRG Energy ( NRG ) agreed to acquire Vivint Smart or $12/share, or $5.2 billion in cash and debt, in December. Some investors on Monday were concerned that the jury verdict may cause NRG Energy to seek a deal price cut or other measures in regard to transaction.
Vivint Smart ( VVNT ) short interest is 15%.
NRG Energy ( NRG ) reported Q4 results on Thursday.
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Vivint Smart Home drops after losing $190M court verdict amid NRG takeover