Glancy Prongay & Murray LLP Files Securities Class Action Lawsuit against SunPower Corporation
August 16 2016 - 9:43PM
Business Wire
Glancy Prongay & Murray LLP (“GPM”) announces that it has
filed a class action lawsuit in the United States District Court
for the Northern District of California on behalf of a class (the
“Class”) consisting of persons and entities that acquired SunPower
Corporation (“SunPower” or the “Company”) (NASDAQ: SPWR) securities
between February 17, 2016, and August 9, 2016.
If you are a member of the Class described above, you may move
the Court no later than 60 days from the date of this notice to
serve as lead plaintiff. Please contact Casey Sadler at
888-773-9224 or 310-201-9150, or at shareholders@glancylaw.com to
discuss this matter.
On August 9, 2016, SunPower issued a press release announcing
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 [Power Purchase
Agreement (“PPA”)] pricing by new market entrants,” and “continued
market disruption in the YieldCo environment.” The Company also
announced a manufacturing realignment which the Company stated
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—expecting a net loss of $175 million to $125 million,
rather than the earlier-forecasted net income of $0 to $50
million.
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.
The complaint charges SunPower and certain of its officers with
violations of the federal securities laws. Specifically, the
complaint alleges that Defendants made false and/or misleading
statements and/or failed to disclose: (1) that a substantial number
of the Company’s customers were adopting a longer-term timeline for
project completion; (2) that the Company’s near-term economic
returns were deteriorating due to aggressive PPA pricing by new
market entrants; (3) that market disruption in the YieldCo
environment was impacting the Company’s assumptions related to
monetizing deferred profits; (4) that, as such, demand for the
Company’s products was significantly declining; (5) that, in
response, the Company would implement a manufacturing realignment
that would result in significant restructuring charges; (6) that,
as such, the Company’s fiscal year 2016 guidance was overstated;
and (7) that, as a result of the foregoing, Defendants’ statements
about SunPower’s business, operations, and prospects, were false
and misleading and/or lacked a reasonable basis.
To be a member of the Class you need not take any action at this
time; you may retain counsel of your choice or take no action and
remain an absent member of the Class. If you wish to learn
more about this action, or if you have any questions
concerning this announcement or your rights or interests with
respect to these matters, please contact Casey Sadler,
Esquire, of Glancy Prongay & Murray LLP, 1925 Century Park
East, Suite 2100, Los Angeles, California 90067, at (310) 201-9150,
by e-mail to shareholders@glancylaw.com, or visit our website
at http://www.glancylaw.com.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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version on businesswire.com: http://www.businesswire.com/news/home/20160816006356/en/
Glancy Prongay & Murray LLP, Los AngelesCasey Sadler,
310-201-9150 or
888-773-9224shareholders@glancylaw.comwww.glancylaw.com
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