PR Newswire
NEW YORK, Dec. 10, 2023
NEW YORK, Dec. 10, 2023 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against SunPower Corporation ("SunPower" or the "Company") (NASDAQ: SPWR) and certain officers. The class action, filed in the United States District Court for the Northern District of California, and docketed under 23-cv-06302, is on behalf of all Defendants for violating Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act"), 15 U.S.C. §§ 78j(b) and 78t(a), and Rule 10b-5 promulgated by the SEC, 17 C.F.R. § 240.10b-5, on behalf of the class of persons and entities (the "Class") that purchased or otherwise acquired the securities of SunPower Corporation ("SunPower" or the "Company") between March 9, 2023 and October 24, 2023 (the "Class Period").
If you are a shareholder who purchased or otherwise acquired SunPower securities during the Class Period, you have until December 26, 2023, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
[Click here for information about joining the class action]
SunPower is a solar technology and energy services provider.
On July 26, 2023, SunPower issued a press release announcing the Company's preliminary unaudited Q2 2023 financial results. Among other things, the Company reduced its guidance for adjusted EBITDA for the year.
On this news, the Company's share price fell $1.77 per share, or %, to close at $9.45 per share on July 26, 2023.
Then, on October 24, 2023, after the market closed, SunPower filed a Form 8-K with the SEC (the "October 24 8-K") revealing a material weakness in its internal controls and the impending restatement of certain financial statements. The October 24 8-K disclosed that investors should no longer rely upon the audited financial statements included in the Company's Form 10-K for the period ended January 1, 2023 (the "2022 10-K"), the unaudited financial statements included in the Company's Form 10-Q for the period ended April 2, 2023 (the "Q1 2023 10-Q"), the unaudited financial statements included in the Company's Form 10-Q for the period ended July 2, 2023 (the "Q2 2023 10-Q"), and any communications describing or based upon those financial statements. The Company added that it planned to restate the 2022 10-K, the Q1 2023 10-Q, and the Q2 2023 10-Q. SunPower explained that it had overstated the value of consignment inventory of certain microinverter components, causing it to understate the associated cost of revenue. The October 24 8-K further revealed that consequently, SunPower's management had concluded that a material weakness existed in the Company's internal control over financial reporting.
On this news, the Company's share price fell $0.90 per share, or 18.1%, to close at $4.06 per share on October 25, 2023, on unusually high trading volume.
Throughout the Class Period, Defendants made materially false and/or misleading statements and failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants misled investors by failing to disclose that: (1) due to a material weakness in its internal control over financial reporting, the Company had inaccurately reported cost of revenue and inventory metrics; (2) as a result of the foregoing, the Company was reasonably likely to incur significant charges to restate prior reporting; and (3) 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.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980
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SOURCE Pomerantz LLP
