| COMPANY |
Stem, Inc. f/k/a Star Peak Energy Transition Corp. |
| COURT |
United States District Court for the Northern District of California |
| CASE NUMBER |
23-cv-02329 |
| JUDGE |
The Hon. Maxine M. Chesney |
| CLASS PERIOD |
March 04, 2021 and February 16, 2023 |
| SECURITY TYPE |
Securities |
Case Background:
On December 4, 2020, Star Peak Energy Transition Corp., a publicly traded special purpose acquisition company (SPAC) announced that it had entered into a definitive agreement to merge with Stem, Inc., a private Delaware corporation and a purported global leader in AI-driven clean energy storage systems, that would result in a combined company with an estimated equity value of approximately $1.35 billion. In the months leading up to the merger, various filings were made with the SEC including a Registration Statement and Prospectus. On April 28, 2021, the merger was consummated and renamed itself “Stem, Inc.”. The following day, April 29, 2021, the company began publicly trading on the NYSE under the ticker symbol “STEM”.
The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose materially adverse facts about the company’s business, operations, and prospects. Specifically, the Offering Documents and Defendants failed to disclose to investors that: (1) Stem suffered from material weaknesses in internal control over financial reporting related to accounting for deferred cost of goods sold and inventory, certain revenue recognition calculations, and internal-use capitalized software calculations; (2) the company had overstated Stem’s and its own post-Merger business and financial prospects; (3) Stem’s software revenue did not make up 100% of the company’s services revenue; (4) Stem had overstated the benefits expected to flow from its AP partnership; and (5) as a result, Defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Current Status of Case:
On November 28, 2023, Defendants filed a Motion to Dismiss which is currently being briefed by the parties. This action is ongoing.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jonathan Naji, Esq. (484) 270-1453 or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.