NEW YORK -- (Business Wire)
Bragar Eagel & Squire, P.C. announces that a class action lawsuit has
been filed in the United States District Court for the California
Northern District Court on behalf of all persons or entities who
acquired SunPower Corporation (NASDAQ:SPWR) securities between February
17, 2016 and August 9, 2016 (the “Class Period”).
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 $0 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 acquired SunPower Corporation securities during the Class Period
or continue to hold shares purchased prior to the Class Period, have
information or would like to learn more about these claims, or have any
questions concerning this announcement or your rights or interests with
respect to these matters please contact J. Brandon Walker, Esq. by email
at investigations@bespc.com,
or telephone at (212) 355-4648, or by filling
out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating
in commercial and securities litigation. For additional information,
please go to www.bespc.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160818006292/en/
Contacts:
Bragar Eagel & Squire, P.C.
J. Brandon Walker, Esq.,
212-355-4648
investigations@bespc.com
Source: Bragar Eagel & Squire, P.C.
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