Deadline Alert: Law Offices of Howard G. Smith Reminds Investors of the Upcoming October 17th Deadline in the Class Action La...
12 October 2016 - 10:26AM
Business Wire
Law Offices of Howard G. Smith reminds investors of the
upcoming October 14, 2016 deadline to file a lead
plaintiff motion in the class action lawsuit filed on behalf of
investors who purchased or otherwise acquired SunPower Corporation
(“SunPower” or the “Company”) (NASDAQ: SPWR) securities between
February 17, 2016, and August 9, 2016, inclusive (the “Class
Period”). SunPower investors have until October 17,
2016 to file a lead plaintiff motion.
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 up 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 purchased SunPower shares, you may move the Court no
later than October 17, 2016 to request appointment
as lead plaintiff. 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 Howard G. Smith,
Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike,
Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215)
638-4847, toll-free at (888) 638-4847, or by email
to howardsmith@howardsmithlaw.com, or visit our website
at http://www.howardsmithlaw.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/20161011006766/en/
Law Offices of Howard G. SmithHoward G. Smith,
Esquire215-638-4847888-638-4847howardsmith@howardsmithlaw.comwww.howardsmithlaw.com
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