Attyx Solar Lawsuit: NY AG Letitia James Sues Attyx & Mosaic [Legal Guide]

On March 17, 2026, New York Attorney General Letitia James announced a landmark consumer-protection enforcement action against residential solar installer Attyx LLC and Attyx New York LLC (formerly doing business as SUNco), its corporate principals, and financing partners Solar Mosaic LLC and WebBank.

The state's lawsuit alleges an expansive $275 million predatory sales and lending scheme that deceived more than 2,500 New York homeowners into signing 25- to 40-year financing agreements for non-functional, unpermitted, or severely defective rooftop solar systems.

Disclaimer This article is for informational, educational, and public-record reporting purposes only and does not constitute formal legal advice. Regulatory complaints represent allegations until adjudicated by a court of competent jurisdiction. If you were financed through Attyx, Solar Mosaic, or WebBank, consult a licensed consumer-protection attorney in your jurisdiction to evaluate your specific contractual deadlines.

1. Overview of the State Enforcement Action

The lawsuit, filed in New York State Supreme Court, alleges that Attyx and its financing partners engaged in persistent fraud, deceptive business practices, and unconscionable contract execution under New York Executive Law § 63(12) and General Business Law §§ 349 and 350.

According to the Attorney General's complaint, Attyx salespeople targeted working-class, rural, and elderly homeowners across Upstate New York, Long Island, and the Hudson Valley using high-pressure door-to-door sales scripts. Sales representatives misrepresented that panels were fully funded through "state clean energy grants" or official utility programs, assuring consumers they would pay nothing out of pocket.

In reality, homeowners were locked into long-term promissory notes ranging from $45,000 to over $95,000, with compounding interest schedules that exceeded the value of their homes.

                   The Alleged Attyx / Mosaic Fraud Structure
                                        │
           ┌────────────────────────────┴────────────────────────────┐
           ▼                                                         ▼
     Attyx Sales Tactics                                   Lender Facilitation
  • "100% Free Solar" Pitch                            • Instant Loan Approvals
  • Falsified NYSERDA Grant Claims                     • Disbursed Funds Without PTO
  • Rushed iPad / Forged E-Signatures                  • Unchecked Dealer Fee Markups
  • Abandoned Roofs & Failed Inspections               • Automated Monthly Debits & Liens

2. Core Allegations Against Attyx (f/k/a SUNco)

The Attorney General's investigation identified four recurring operational patterns across consumer complaints.

1. The "Free Government Solar" Pitch

Canvassers claimed to represent the State of New York, local utilities, or the New York State Energy Research and Development Authority (NYSERDA). Homeowners were told that state legislation required their neighborhood to transition to clean energy at zero net cost, when in fact no such state-mandated free solar installation program exists.

2. Tablet Signature Ambush and Forgery

Sales representatives routinely navigated electronic signature portals on company-owned iPads, instructing consumers to "tap here to check program eligibility" or "sign for a free utility audit." In dozens of documented affidavits, homeowners discovered that their electronic initials and signatures had been copied onto binding financing instruments they were never permitted to read.

3. Abandoned Installations and Failed Inspections

Hundreds of installations were left partially completed for six to eighteen months. Systems failed local municipal building code inspections, lacked required net-metering interconnection approval from utilities like National Grid, Con Edison, or NYSEG, or caused severe structural roof penetrations and active water leaks.

4. Rebranding to Evade Consumer Scrutiny

The complaint notes that Attyx previously operated under the business name SUNco. As negative reviews and consumer complaints accumulated under the SUNco banner, the enterprise reorganized and rebranded as Attyx to continue marketing identical door-to-door contracts across New York communities.

3. Why Solar Mosaic and WebBank Are Named as Co-Defendants

A critical dimension of the New York action is the inclusion of solar lenders Solar Mosaic LLC and WebBank as primary defendants alongside the installation company.

State regulators allege that Mosaic and WebBank did not act as passive financiers. Instead, the lenders:

• Contractually Enabled Predatory Distribution Provided Attyx with point-of-sale financing portals that approved loans in under three minutes without independently verifying homeowner identity, income, or genuine consent.
• Disbursed Loan Proceeds Prematurely Released tens of millions of dollars to Attyx before verifying that systems had received Permission to Operate (PTO) or passed municipal electrical inspections.
• Enforced Collections on Dark Systems Continued debiting homeowner bank accounts and threatening negative credit bureau reporting even after receiving written notice that systems were non-functional or that electronic signatures were disputed.
• Clouded Real Estate Title with UCC-1 Liens Filed fixture filings against homeowners' properties, preventing families from selling or refinancing their homes without paying off fraudulent loan balances.

Under the FTC Holder Rule (16 C.F.R. § 433), creditors holding consumer paper are legally subject to all claims and defenses that the debtor could assert against the original seller. By naming Mosaic and WebBank directly under state UDAP laws, the Attorney General seeks to extinguish these underlying promissory notes.

4. Relief Sought by the New York Attorney General

The complaint filed by Attorney General James demands comprehensive equitable and monetary remedies:

1. Permanent Injunction Barring Attyx, its affiliated entities, and its executive officers from conducting solar sales or home improvement contracting in New York.
2. Complete Contract Rescission Voiding all outstanding consumer agreements executed through fraudulent or deceptive practices.
3. Loan Cancellation & Balance Forgiveness Compelling Solar Mosaic and WebBank to cancel all remaining loan balances, cease collections, and refund all principal and interest collected from affected homeowners.
4. Lien Termination Ordering the immediate expungement of all recorded UCC-1 financing statements and county land record filings.
5. Credit Bureau Deletion Requiring defendants to request the complete deletion of negative credit trade lines reported to Equifax, Experian, and TransUnion.
6. Civil Penalties and Restitution Securing maximum civil monetary penalties under New York General Business Law § 350-d and full restitution for property damage.

5. What Affected Homeowners Should Do Immediately

If you have an existing solar contract or promissory note with Attyx (SUNco), Solar Mosaic, or WebBank in New York, take the following concrete steps.

Step 1: Audit Your Contract and Request the DocuSign Audit Trail

Demand a full copy of your loan agreement, note disclosure, and the electronic signature certificate of completion from Solar Mosaic or WebBank. Inspect the IP address, timestamp, and signer email. If the IP address matches the salesperson's mobile carrier or device rather than your home Wi-Fi network, you have vital evidence of an unauthorized or forged execution.

Step 2: Send a Formal Written Dispute Under the FTC Holder Rule

Do not rely on telephone customer service. Send a formal dispute via Certified Mail (Return Receipt Requested) to Solar Mosaic and WebBank asserting:

• That the installation was procured via deceptive trade practices under NY GBL § 349;
• That the system is non-operational or unpermitted;
• That under 16 C.F.R. § 433.2, you assert your complete defense against further loan repayment.

Step 3: Submit a Formal Complaint to the New York AG

File an online complaint with the Office of the New York State Attorney General — Bureau of Consumer Frauds and Protection. Reference the March 17, 2026 enforcement action against Attyx and Solar Mosaic, attach your contracts, and detail any roof leaks, unpermitted equipment, or forged signatures.

Step 4: Protect Your Property Title

Check your county clerk’s land records to confirm whether a UCC-1 fixture filing has been recorded against your parcel. If the loan is based on forgery or fraud, the lien is unauthorized under Uniform Commercial Code § 9-509 and subject to statutory termination demands under UCC § 9-513.

Sources and Official References

• New York Attorney General Announcement — Attorney General James Sues Home Solar Power Company and Lenders — Official press release detailing the $275M enforcement action against Attyx, Solar Mosaic, and WebBank.
• New York General Business Law § 349 — Statutory text governing deceptive acts and practices unlawful in New York.
• FTC Holder Rule (16 C.F.R. Part 433) — Federal regulation preserving consumer claims and defenses against loan holders.
• Uniform Commercial Code § 9-509 & § 9-513 — Legal rules governing unauthorized fixture liens and statutory termination demands.
• NYSERDA Consumer Protection Policies — Official New York State residential solar standards and contractor compliance rules.

FAQ

Who is Attyx and why did they change their name from SUNco?

Attyx LLC is a residential solar sales and installation contractor operating primarily in New York, Utah, and neighboring states. The company formerly marketed door-to-door under the trade name SUNco. As customer complaints, unpermitted installations, and negative ratings mounted against SUNco, the corporate principals rebranded operations as Attyx to continue sales canvassing under a clean consumer-facing identity.

Does the New York AG lawsuit mean I can immediately stop paying Mosaic?

Not automatically without legal notice. Ceasing payments unilaterally without a formal dispute on record can trigger automated negative credit reporting, collection calls, or default notices. To protect your credit, homeowners should send a formal written dispute letter citing the FTC Holder Rule and the Attorney General's enforcement action, and consult with a solar scam attorney before canceling automated debits.

What if my Attyx system was installed but never activated by the utility?

If your system has not received official Permission to Operate (PTO) from your utility, the contract has not been substantially performed. Under federal Truth in Lending disclosures and the FTC Holder Rule, lenders should not disburse or collect on consumer loans where the underlying equipment has not been energized and delivered as warranted.

How does the Mosaic bankruptcy interact with the New York Attyx lawsuit?

Solar Mosaic filed for Chapter 11 bankruptcy in June 2025, and its liquidating plan transferred an $8 billion loan book to successor servicers. While pre-petition claims against Mosaic's bankruptcy estate were subject to an October 2025 bar date, affirmative defenses to loan enforcement (such as fraud, forgery, and the FTC Holder Rule) travel with the promissory note. Whoever currently holds or services your Mosaic loan remains legally subject to your defenses against payment.