Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Satcon Technology Corporation
20 July 2011 - 8:07AM
Business Wire
Robbins Geller Rudman & Dowd LLP (“Robbins Geller”)
(http://www.rgrdlaw.com/cases/satcon/) today announced that a class
action has been commenced in the United States District Court for
the District of Massachusetts on behalf of purchasers of Satcon
Technology Corp. (“Satcon”) (NASDAQ:SATC) common stock during the
period between March 4, 2010 and July 5, 2011 (the “Class
Period”).
If you wish to serve as lead plaintiff, you must move the Court
no later than 60 days from today. If you wish to discuss this
action or have any questions concerning this notice or your rights
or interests, please contact plaintiff’s counsel, Samuel H. Rudman
or David A. Rosenfeld of Robbins Geller at 800/449-4900 or
619/231-1058, or via e-mail at djr@rgrdlaw.com. If you are a member
of this class, you can view a copy of the complaint as filed or
join this class action online at
http://www.rgrdlaw.com/cases/satcon/. Any member of the putative
class may move the Court to serve as lead plaintiff through counsel
of their choice, or may choose to do nothing and remain an absent
class member.
The complaint charges Satcon and certain of its officers and
directors with violations of the Securities Exchange Act of 1934.
Satcon is a leading provider of utility-grade power conversion
solutions for the renewable energy markets in the United States and
internationally.
The complaint alleges that during the Class Period, defendants
issued materially false and misleading statements regarding the
Company’s business practices and financial results. Specifically,
defendants misrepresented and/or failed to disclose the following
adverse facts: (a) that the Company was experiencing a
decrease in sales of its inverter systems; (b) that the
Company’s European market was performing below internal
expectations due to changes in government incentives for solar
energy; (c) that the Company failed to properly account for
its inventory; and (d) as a result of the foregoing,
defendants lacked a reasonable basis for their positive statements
about the Company and its prospects.
On February 22, 2011, Satcon announced its financial results for
the fourth quarter and year end of 2010. With regard to the
Company’s outlook for the first quarter of 2011, defendants stated
that they expected “ revenues to be in the range of $65 to $70
million with our gross margin between 25% to 27%.” In reaction to
the announcement, the price of Satcon stock fell $1.29 per share,
or 27%, to close at $3.54 per share, on heavy trading volume. On
April 7, 2011, Satcon announced its preliminary financial results
for the first quarter of 2011. For the quarter, the Company revised
its guidance and stated that revenue would be between $61 million
and $63 million and gross margins would be within a range of 23% to
25%. In reaction to this announcement, the price of Satcon stock
fell $0.23 per share, or 7%, to close at $3.29 per share.
On April 27, 2011, Satcon announced its financial results for
the first quarter of 2011, the period ended March 31, 2011, and its
guidance for the second quarter. With regard to the guidance,
defendants stated that they expected “revenue to be in the range of
$50 to $60 million.” Then on July 5, 2011, the Company announced
preliminary financial results for the second quarter of 2011. For
the quarter, the Company expected revenue to be between $45 million
and $47 million due to “changes in government incentives in the
company’s higher margin markets in Europe as well as delays on a
few projects that have been pushed into the third quarter.”
Moreover, the Company announced that its gross margin estimate
would be “between 7% and 11%, below the company’s previously
announced guidance of 17% to 20%” due to the “lower revenue range,
and the effects of the slowdown in the European market. Lastly, the
Company announced that it was reducing its workforce by 15%. In
reaction to these announcements, the price of Satcon stock fell
$0.59 per share, or 23%, to close at $1.95 per share, on heavy
trading volume.
Plaintiff seeks to recover damages on behalf of all purchasers
of Satcon common stock during the Class Period (the “Class”). The
plaintiff is represented by Robbins Geller, which has expertise in
prosecuting investor class actions and extensive experience in
actions involving financial fraud.
Robbins Geller, a 180-lawyer firm with offices in San Diego, San
Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and
Atlanta, is active in major litigations pending in federal and
state courts throughout the United States and has taken a leading
role in many important actions on behalf of defrauded investors,
consumers, and companies, as well as victims of human rights
violations. The Robbins Geller Web site (http://www.rgrdlaw.com)
has more information about the firm.
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