SunPower Corporation (Nasdaq: SPWR)
A class action has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of SunPower Corporation (Nasdaq: SPWR) common stock between February 17, 2016 and August 9, 2016 (the “Class Period”).
The complaint charges SunPower and certain of its officers with violations of the Securities Exchange Act of 1934. SunPower is an energy company that delivers solar solutions to residential, commercial and power plant customers.
The complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding SunPower’s business and prospects. Specifically, the complaint alleges defendants failed to disclose that: (1) a substantial number of the Company's customers were adopting a longer term timeline for project completion; (2) the Company's near-term economic returns were deteriorating due to aggressive Power Purchase Agreement ("PPA") pricing by new market entrants; (3) market disruption in the YieldCo environment was impacting the Company's assumptions related to monetizing deferred profits; and (4) demand for the Company's products was significantly declining, and in response the Company would implement a manufacturing realignment that would result in significant restructuring charges, which would cause the Company's fiscal year 2016 guidance to be overstated. As a result of these false statements and/or omissions, SunPower securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high of over $25 per share.
Then on August 9, 2016, SunPower announced its second quarter 2016 financial results. Therein, the Company disclosed the existence of several factors negatively impacting the Company's performance, including "customers adopting a longer-term timeline for project completion," "aggressive PPA pricing by new market entrants," and "continued market disruption in the YieldCo environment." The Company also announced a manufacturing realignment, which would result in restructuring charges totaling $30-$45 million, a substantial portion of which would be incurred in the third quarter of 2016. Finally, the Company disclosed that, as a result of these "challenges," it was substantially decreasing its fiscal year 2016 guidance and was expecting a net loss of $175 million to $125 million, rather than the net income of $0 to $50 million it had previously forecast. On this news, SunPower's stock price fell $4.47 per share, or 30%, to close at $10.31 per share on August 10, 2016, on unusually heavy trading volume.
If you are a current shareholder and purchased stock between February 17, 2016 and August 9, 2016, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.
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