Federal Court Allows SGT Solar Lending MDL to Move Forward Against Dividend Solar Finance and Fifth Third Bank

August 22, 2025

In a significant victory for homeowners nationwide, U.S. District Judge Katherine M. Menendez of the District of Minnesota allowed fraud and predatory lending claims to move forward against Dividend Solar Finance and Fifth Third Bank in multidistrict litigation over solar panel system loans.

The ruling addresses allegations that Dividend Solar Finance and Fifth Third Bank engaged in predatory lending practices by concealing substantial "platform fees" in solar panel system loans. These undisclosed fees, which can exceed tens of thousands of dollars, were allegedly hidden within loan principal, while homeowners were told their financing came with low interest rates. One plaintiff's actual loan principal was $44,360 but the loan documents showed $70,661, reflecting an undisclosed platform fee of $26,301, Judge Menendez wrote.

The court found that the platform fees fit within the Truth in Lending Act's definition of "finance charges" that must be disclosed to consumers, rejecting Fifth Third's arguments otherwise. The ruling emphasized that requiring disclosure helps consumers "avoid the uninformed use of credit" and ensures they understand the true cost of financing versus cash purchases.

The ruling also allowed common law fraud claims to proceed, finding that loan documents contained affirmative misrepresentations about how loan proceeds would be used. While the court dismissed RICO claims, it ordered discovery to begin immediately, marking a critical milestone in the fight for accountability in the rapidly growing residential solar industry.

Silver Golub & Teitell partner Ian Sloss serves as interim co-lead counsel in this national litigation, continuing the firm's pioneering work in exposing these predatory lending practices.

The case is In re Dividend Solar Finance, LLC, and Fifth Third Bank Sales and Lending Practices Litigation (MDL No. 3128), pending before Judge Menendez in the U.S. District Court for the District of Minnesota.

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