According to the complaint, SunPower is an energy company that delivers solar solutions to residential, commercial, and power plant customers. The company’s offerings purportedly include: solar module technology and solar power systems that are designed to generate electricity over a system life typically exceeding 25 years; integrated Smart Energy software solutions; installation, construction, and ongoing maintenance, and monitoring services; and financing solutions that provide customers a variety of options for purchasing or leasing solar products.
The complaint alleges that throughout the Class Period, the defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, the complaint alleges that the 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 Power Purchase Agreement (“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, the defendants’ statements about SunPower’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
According to the complaint, 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 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. Following 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.
If you are a member of the class described above, you may no later than October 17, 2016 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
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