Bragar Eagel & Squire, P.C. Announces That a Class Action Lawsuit Has Been Filed Against SunPower Corp. (SPWR) & Encourages I...
August 18 2016 - 5:43PM
Business Wire
Bragar Eagel & Squire, P.C. announces that a class action
lawsuit has been filed in the United States District Court for the
California Northern District Court on behalf of all persons or
entities who acquired SunPower Corporation (NASDAQ:SPWR) securities
between February 17, 2016 and August 9, 2016 (the “Class
Period”).
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.
If you acquired SunPower Corporation securities during the Class
Period or continue to hold shares purchased prior to the Class
Period, have information or would like to learn more about these
claims, or have any questions concerning this announcement or your
rights or interests with respect to these matters please contact J.
Brandon Walker, Esq. by email at investigations@bespc.com, or
telephone at (212) 355-4648, or by filling out this contact form.
There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm
concentrating in commercial and securities litigation. For
additional information, please go to www.bespc.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20160818006292/en/
Bragar Eagel & Squire, P.C.J. Brandon Walker, Esq.,
212-355-4648investigations@bespc.com
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