Vivint Solar Says It's Suing SunEdison

Vivint Solar Inc (NYSE: VSLR) has taken steps to sue Sunedison Inc (NYSE: SUNE) on accusations that the latter willfully breached a previous merger agreement between the two entities.

According to Vivint's press release, Vivint stated, "Among other things, Vivint Solar is seeking damages for the benefits its stockholders expected in connection with the transaction."

On Tuesday, SunEdison's stock spiked up following news that Vivint Solar had terminated the merger agreement. Analysts then weighed in, with one saying the market overreacted to the news.

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In addition to SunEdison's Tuesday jump, other solar stocks were on the move, with TerraForm Power Inc (NASDAQ: TERP) and SolarCity Corp (NASDAQ: SCTY) among those movers.

Regarding the legal actions, Vivint Solar CEO and president Gregory Butterfield stated, "SunEdison has willfully breached its obligations under the merger agreement and we intend to pursue Vivint Solar's remedies vigorously."

At time of writing, Vivint was trading up 2.64 percent at $4.28, while SunEdison was down 1.50 percent at $1.97.