BENSALEM, Pa. -- (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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161011006766/en/
Contacts:
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
Source: Law Offices of Howard G. Smith
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