The US Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) are investigating SunEdison after the cancellation of its $1.9bn acquisition of Vivant Solar.

SunEdison’s failure to meet its obligations was seen as the main reason for the termination. Vivint Solar said it reserves all rights under the merger agreement.

The company sued SunEdison over its willful breach of the merger agreement. It is seeking damages for the benefits its stockholders expected in connection with the transaction.

SunEdison has now received a subpoena from the DOJ seeking information on its financial activities related to the acquisition of Vivanta Solar.

In a SEC filing, SunEdison said the DOJ was also looking into the conduct of a former non-executive employee who is alleged to have committed wrongdoing in connection with the Vivint deal.

The officials are also probing investigations undertaken by the company’s audit committee and intercompany transactions involving TerraForm Power.

The financing of SunEdison’s projects in Uruguay are also under investigation.

SunEdison said: "The Company and the board of directors intend to cooperate with the DOJ’s inquiry and the SEC investigation."

SunEdison agreed to acquire Vivint Solar in July 2015 in a bid to speed up its expansion in the residential solar market.

Vivint Solar operates in seven states including California, Hawaii, Maryland, Massachusetts, New Jersey, New York, and Washington D.C.