Rocket Companies (RKT  ) announced its forthcoming entry into the solar industry on Monday. The announcement was immediately followed by a separate statement from a law firm that the company was the subject of several impending class action suits.

Shares of Rocket Companies jumped after the firm announced its entry into solar. Given the ongoing boom in renewable energy investment, including a growing market for residential solar, the decision could prove to be lucrative for Rocket. With testing starting in Q4, Rocket's installation service is intended to be a streamlined, tech-savvy means of installing solar equipment.

"We have the technology and expertise to provide the best experience possible for homeowners who want to go green. This is a perfect synergy between our businesses as we develop a digital solution to ensure Americans can receive solar panels with the same certainty they have come to expect when working with our Rocket platforms," said Jay Farner, Vice Chairman and CEO of Rocket.

Given Rocket's origins as a tech-oriented firm, the company's shift into solar could prove to be highly lucrative. True to Rocket's roots in the mortgage market, part of its solar services will include financing.

While investors appeared to cheer the decision, driving up Rocket's share price, the announcement of an upcoming series of class action suits against the company has since reversed Monday's enthusiastic rally. Coming just weeks after the company faced allegations of securities fraud and the filing of separate litigation, the class-action suit filed by Leon and Korsinsky LLC is alleging that the company had misled investors.

"Rather than remaining elevated due to surging demand, Rocket's Company-wide gain-on-sale margins had fallen materially below recent historical averages; and as a result of the foregoing, defendants' positive statements about the Company's business operations and prospects were materially misleading and/or lacked a reasonable basis," the firm stated in a press release.

The lawsuit is only open to Rocket investors who purchased shares of the company between February 25 and May 5 this year.

Rocket shares surged for much of the day, rising 4.9% to reach the day's peak of $18.08. News of the class action suit was released in the afternoon, driving Rocket shares down 1% just before close. Tuesday so far has seen Rocket shares lose an additional 5% before noon. It's hard to say what the future holds for Rocket, given the conflicting paths it has going forward.

Analysts seem to be airing on the same of caution for the most part, with 11 hold ratings against 2 buy and 3 sell.