The $189 million judgement awarded by a jury in a lawsuit in opposition to Vivint Sensible House (NYSE:VVNT) may result in revised phrases within the the corporate’s deliberate sale to NRG Power (NYSE:NRG), in accordance to a Financial institution of America analyst.

“We see the Vivint lawsuit (a $189mn choice in opposition to the smart-home platform) as key to observe, with potential for revised time period,” BofA analyst Julien Dumoulin-Smith, who has a impartial score and raised his value goal to $35 from $32, wrote in a word on Tuesday.

Vivint Sensible (VVNT) shares dropped 5% after the corporate disclosed that after a North Carolina jury dominated the corporate should pay $190 million in damages over a lawsuit filed by CPI Safety Methods in 2020 associated to alleged historic practices by sure Vivint gross sales personnel.

The authorized judgement in opposition to Vivint Sensible (VVNT) comes after NRG Power (NRG) agreed to accumulate Vivint Sensible or $12/share, or $5.2 billion in money and debt, in December.

NRG Power (NRG) mentioned in an announcement to In search of Alpha that it is “evaluating the choice” and its choices.

“We’re conscious of the jury’s choice in CPI Safety’s lawsuit in opposition to Vivint Sensible House,” a NRG spokesman mentioned in an e mail. “We’re persevering with to guage the choice and our choices. As we shared throughout our current earnings announcement, NRG’s acquisition of Vivint is pending and has not but closed.”

Primarily based on the detrimental inventory response when the deal was introduced in December, with NRG (NRG) shares plunging 15% on the transaction announcement, NRG traders would seemingly view failure to finish the Vivint (VVNT) deal as a constructive, in keeping with BofA’s Dumoulin-Smith.

“Given the eye on the deal, we question whether or not the most recent judgement may drive a revision of acquisition time period,” Dumoulin-Smith added. “Given the close to time period closing contemplated (seemingly beforehand implied by finish of February) watch this rigorously within the week forward for any shifts.”

Vivint Sensible (VVNT) mentioned it believes the decision was not “legally or factually supported” and plans to file an attraction.

“We’re extraordinarily dissatisfied with the jury’s choice, which we imagine is just not legally or factually supporter,” the corporate mentioned in an announcement emailed to In search of Alpha. “Moreover, the quantity of damages awarded are egregious and fully disconnected from the whole financial impression of any exercise that CPI claims to have occurred with respect to this matter. We intend to file an attraction, pursue all authorized choices out there to us and proceed to defend ourselves vigorously.”

Vivint Sensible (VVNT) brief curiosity is 15%.