Freedom Forever Solar Lawsuit 2026: Bankruptcy, State Objections, and No Consumer Payout
Quick Answer
- Freedom Forever filed for Chapter 11 bankruptcy in Delaware on April 15, 2026, listing debts over $500 million .
- A dozen states objected to Freedom Forever’s settlement with financing partner Participate Holdings over customer contract impacts .
- No consumer settlement fund exists, and there is no claims process or payout available to customers.
If you’re searching for the Freedom Forever solar lawsuit, you’re likely a homeowner who signed a contract with the company and now worries about what happens to your system, your loan, or your warranty. Or you saw headlines about a solar company collapsing and want to know if you’re owed money.
Here’s the verified truth: Freedom Forever is in Chapter 11 bankruptcy, not a class action settlement. There is no pool of money set aside for customers. There is no claims deadline. The bankruptcy process will determine what happens to customer contracts, and a dozen states have already objected to one settlement they say could harm homeowners.
This article breaks down exactly what the court records show about the bankruptcy, the state objections, the Texas Attorney General investigation, and what you can actually do if you’re a Freedom Forever customer.
The Facts
| Case | Freedom Forever LLC, Chapter 11 Case No. 26-10522 (BLS) |
| Status | Chapter 11 bankruptcy active; settlements under objection from 12 states |
| Fund Size | Not applicable; bankruptcy estate lists debts over $500 million |
| Est. Per Person | Not yet determined; no consumer distribution plan approved |
| Claim Deadline | Not applicable; no consumer claims process open |
| Administrator | Not applicable; Kroll Restructuring Administration is the bankruptcy noticing agent |
| Proof Needed | Not applicable; this is not a claims process |
Is the Freedom Forever solar lawsuit real?
The Freedom Forever solar lawsuit is real, but it’s not a single consumer class action. It’s a Chapter 11 bankruptcy case with multiple legal disputes layered on top, including state objections to settlements and a Texas Attorney General investigation.
Freedom Forever LLC and affiliated entities filed voluntary petitions for Chapter 11 bankruptcy on April 15 and May 2, 2026 in the U.S. Bankruptcy Court for the District of Delaware . The case is jointly administered under Case No. 26-10522 (BLS).
Separately, a class action adversary proceeding was filed by plaintiffs Jacob Quinones and Prophet Kelley on behalf of themselves and others similarly situated. The First Amended Class Action Complaint was filed on April 27, 2026 .
The bankruptcy court entered a scheduling order on July 30, 2026 that sets deadlines for the class action through May 31, 2027 .
Key Takeaway: Freedom Forever is in Chapter 11 bankruptcy, and a separate class action is proceeding within that bankruptcy. There is no settlement fund or consumer payout available right now.
How much is the Freedom Forever solar lawsuit settlement?
There is no Freedom Forever solar lawsuit settlement for consumers. The bankruptcy case involves settlements between Freedom Forever and its business partners, not payments to homeowners.
The court docket shows two major settlements under review:
Participate Holdings Settlement. Freedom Forever filed a motion on June 24, 2026 to approve a settlement with Participate Holdings, LLC. A dozen states filed an objection on July 8, 2026, raising concerns about the deal’s impacts on customer contracts . A revised proposed order resolving the states’ objection was filed on July 14, 2026 .
Sunrun Settlement. Freedom Forever filed a motion on July 6, 2026 to approve a settlement with Sunrun, including rejection of certain agreements and allowance of Sunrun’s reclamation claim . A hearing was scheduled for July 29, 2026 .
Neither settlement involves money for consumers. They resolve business-to-business disputes.
Reality Check: No one is texting you about a Freedom Forever settlement payout. The bankruptcy is about debts Freedom Forever owes to lenders and suppliers, not payments to homeowners. If someone contacts you offering to get you money from this case, it’s a scam.
Who is affected by the Freedom Forever bankruptcy?
You are affected by the Freedom Forever bankruptcy if you have an active solar installation contract, a financing agreement through a partner lender, or a warranty claim with the company. Customer contracts are at the center of the state objections.
The twelve states that objected to the Participate Holdings settlement specifically raised concerns about how the deal would affect customer contracts with the bankrupt solar panel installer . That means state regulators are worried homeowners could face changes to their agreements.
Freedom Forever was the second-largest residential solar installer in the U.S. in 2025 with a 6.1% market share, behind SunRun. By the fourth quarter of 2025, its market share had dropped to 3.9% .
The company’s bankruptcy filing lists debts over $500 million and total assets between $100 million and $500 million. It owes more than $100 million to solar financing company Mosaic Funding IX and tens of millions to suppliers including JA Solar, Trina Solar, JinkoSolar, and Silfab Solar .
What is the Texas Attorney General investigation into Freedom Forever?
The Texas Attorney General investigation into Freedom Forever is a consumer protection probe announced in April 2026. Attorney General Ken Paxton issued Civil Investigative Demands to Freedom Forever, SunRun, Lone Star Solar, and CAM Solar over alleged violations of the Texas Deceptive Trade Practices-Consumer Protection Act .
The investigation focuses on:
- Misrepresentations about energy bill savings
- Claims about the efficacy of solar panel systems
- Equipment implementation issues
- Terms and policies that may deceive consumers
The OAG cited over 100 complaints filed directly with its office and “thousands more online” against these companies .
“Thousands of Texans have been targeted by companies selling solar panel systems, and it’s imperative that these companies are held responsible for any lies or deceptive marketing they use,” Paxton said in the announcement .
This investigation is separate from the bankruptcy. It could lead to enforcement action, fines, or a consumer restitution order if the state proves its case.
What do Freedom Forever customer complaints say?
Freedom Forever customer complaints on the Better Business Bureau and consumer forums describe cancellation failures, loan close-out problems, and credit reporting damage. These complaints are not part of a class action, but they show the pattern of issues consumers face.
One BBB complaint from December 2025 describes a homeowner who cancelled a project on April 2, 2024. Freedom Forever confirmed the pre-approved loan would be closed within 60 days and that no loan information would appear on credit reports. More than a year later, the loan still appeared open under Mosaic, showing a debt of $29,492 .
The homeowner wrote that Mosaic never received a close-out letter from Freedom Forever, which is required to update records and close the claim .
Another complaint on Ripoff Report from June 2025 describes a homeowner who signed a contract in September 2024, then signed a second contract in December that was supposed to replace the first. The homeowner was “explicitly assured in writing, in emails, and on recorded calls” that the first contract would be canceled. Instead, Freedom Forever drew 70% of the loan amount .
A Puerto Rico court case involving Sunrun and Freedom Forever describes a salesperson who showed a homeowner documents on a tablet “very quickly” in February 2024. The homeowner said she never read the documents, only signed where the salesperson indicated, and never received a copy. Two days after installation, water was found next to the refrigerator, and the solar system wasn’t working .
How do you check if you’re affected by the Freedom Forever bankruptcy?
You check if you’re affected by the Freedom Forever bankruptcy by reviewing your contract, your financing agreement, and any warranty documents. The bankruptcy affects different customers in different ways depending on how their systems were financed and who holds the debt.
Here’s a numbered checklist:
- Locate your Freedom Forever contract and any financing agreement with Mosaic, EnFin, or another lender.
- Check your loan servicer portal to see if your account is active and who owns the debt.
- Review your warranty documents to see what coverage you have and who backs it.
- Monitor the bankruptcy docket through the Kroll Restructuring Administration website for Freedom Forever.
- File a complaint with your state Attorney General if you have unresolved issues.
- Consult a consumer attorney if you believe you have claims for misrepresentation or breach of contract.
The bankruptcy case number is 26-10522 (BLS) in the U.S. Bankruptcy Court for the District of Delaware. Kroll Restructuring Administration is the noticing agent .
What is the class action adversary proceeding in the bankruptcy?
The class action adversary proceeding is a lawsuit filed within the Freedom Forever bankruptcy by plaintiffs Jacob Quinones and Prophet Kelley on behalf of themselves and other similarly situated customers. It is proceeding alongside the bankruptcy case.
The First Amended Class Action Complaint was filed on April 27, 2026 . Freedom Forever filed its Answer on June 25, 2026 .
The court entered a scheduling order on July 30, 2026 with these key deadlines:
| Deadline | Event |
|---|---|
| August 28, 2026 | Initial disclosures under Fed. R. Civ. P. 26(a)(1) |
| October 30, 2026 | Deadline to amend pleadings or join parties |
| December 4, 2026 | Plaintiffs’ motion for class certification due |
| March 1, 2027 | Fact discovery completed |
| March 31, 2027 | Expert reports served |
| May 31, 2027 | Expert discovery and discovery close |
No class has been certified yet. Until the court certifies a class, there is no “class” and no eligibility to participate. Class certification is scheduled for December 4, 2026 .
What Happens Next
- December 4, 2026: Plaintiffs’ motion for class certification due in the adversary proceeding .
- Ongoing: Bankruptcy settlements with Participate Holdings and Sunrun continue to be reviewed by the court.
- Ongoing: Texas Attorney General investigation into Freedom Forever and other solar companies continues.
- Expected 2027: Fact discovery in the class action adversary proceeding concludes March 1, 2027 .
- No consumer payout scheduled: No distribution plan for customers has been proposed or approved.
Frequently Asked Questions
Is there a Freedom Forever settlement I can claim?
No. There is no consumer settlement fund, no claims administrator, and no payout available to customers. The bankruptcy involves business-to-business settlements.
Did Freedom Forever go bankrupt?
Yes. Freedom Forever filed for Chapter 11 bankruptcy on April 15, 2026 in Delaware, listing debts over $500 million .
What happens to my Freedom Forever solar contract?
Customer contracts are at the center of the state objections to the Participate Holdings settlement. A dozen states raised concerns about how that deal affects homeowners .
Why are states objecting to the Freedom Forever settlement?
Twelve states objected to the Participate Holdings settlement over concerns about its impacts on customer contracts with the bankrupt solar installer .
Is Freedom Forever being investigated by Texas?
Yes. Texas Attorney General Ken Paxton issued Civil Investigative Demands to Freedom Forever and other solar companies over alleged deceptive trade practices .
Can I sue Freedom Forever for misrepresentation?
A class action adversary proceeding is pending in the bankruptcy. The class certification motion is due December 4, 2026 .
What should I do if I have a Freedom Forever loan through Mosaic?
Check your loan servicer portal and review your contract. File a complaint with your state Attorney General if you have unresolved issues.
Will Freedom Forever customers get money from the bankruptcy?
No consumer distribution plan has been proposed or approved. The bankruptcy is about resolving debts to lenders and suppliers, not paying customers.
