David Tepper is suing Wall Street's nightmare stock
Tepper is not a shareholder in SunEdison, he is a shareholder in TerraForm Power one of its two sister companies known as yieldcos. They were created to manage solar projects built by SunEdison, like a utility.
SunEdison's stock is down 7% and falling.
In December, he wrote a letter to TerraForm Power's board, outlining his frustrations at its closeness to the parent company. He believes that SunEdison is using TerraForm Power to hide that it is cash poor.
Specifically, he - and the rest of Wall Street for that matter - point to SunEdison's attempt to acquire Vivint back in July. That was the trigger that sent the stock tumbling.
Here's why, according to Tepper's letter:
"The July announcement of the acquisition of the Vivint Solar ('VSLR') portfolio of residential rooftop assets marks an unfortunate departure from this business model and appears to serve the sole purpose of promoting SUNE's desire to acquire VSLR's development and operating assets, rather than enhancing the quality and value of TERP's holdings," Tepper wrote.
He also demanded to see all documents surrounding the deal.
It should be noted that in October there were rumors circling that Appaloosa owned SunEdison stock.
Tepper told CNBC then that people who belived those rumors "must be high" and that there was "some really good ganja coming into this country."