Robbins Arroyo LLP: Capstone Turbine Corp. (CPST) Misled Shareholders According to a Recently Filed Class Action
November 18 2015 - 5:27PM
Business Wire
Shareholder rights law firm Robbins Arroyo LLP announces that a
class action complaint was filed in the U.S. District Court for the
Central District of California. The complaint alleges that officers
and directors of Capstone Turbine Corp. (NASDAQCM: CPST) violated
the Securities Exchange Act of 1934 between November 7, 2013 and
November 5, 2015, by making materially false and misleading
statements about Capstone's business prospects. Capstone develops,
manufactures, markets, and services microturbine technology
solutions for use in stationary distributed power generation
applications worldwide.
View this information on the law firm's Shareholder Rights
Blog:www.robbinsarroyo.com/shareholders-rights-blog/capstone-turbine-corp
Capstone Discloses Disappointing Second Quarter 2015
Results
According to the complaint, from 2013 to 2015, Capstone issued a
series of press releases touting positive operating results, along
with filings with the U.S. Securities and Exchange Commission
reaffirming those results. However, the complaint alleges that
these statements were misleading because Capstone failed to
disclose that BPC Engineering ("BPC"), one of the company's main
Russian distributors, was unlikely to be able to fulfill many of
its legal and financial obligations to Capstone, and that it failed
to make appropriate adjustments to its accounts receivable and
backlog to account for this. The complaint further alleges that
Capstone issued financial statements in violation of Generally
Accepted Accounting Principles (GAAP) and that the company lacked
adequate internal controls over accounting.
On October 1, 2015, Capstone issued a press release disclosing
that its preliminary second quarter earnings were notably below
management's expectations and analysts' consensus estimates due to
delayed orders and shipments. It further disclosed that it received
no significant payments from its Russian distributor, who until
recently was one of its largest customers. On this news, shares of
Capstone fell $0.09, or more than 25% per share, to close at $0.25
on October 1, 2015. Then, on November 6, 2015, after Capstone
disclosed a second quarter 2015 net loss of $7.9 million, or $0.02
per share for the quarter, Capstone stock fell $0.02 per share, or
more than 7%, to close at $0.20.
Capstone Shareholders Have Legal Options
Concerned shareholders who would like more information about
their rights and potential remedies can contact attorney Darnell R.
Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
shareholder rights law. The firm represents individual and
institutional investors in shareholder derivative and securities
class action lawsuits, and has helped its clients realize more than
$1 billion of value for themselves and the companies in which they
have invested.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20151118006731/en/
Robbins Arroyo LLPDarnell R. Donahue619-525-3990 or Toll Free
800-350-6003DDonahue@robbinsarroyo.comwww.robbinsarroyo.com
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