NEW YORK, Sept. 2, 2016 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against SunPower Corporation ("SunPower" or the "Company") (NASDAQ: SPWR) and certain of its officers. The class action, filed in United States District Court, Northern District of California, and docketed under 16-cv-04915, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired SunPower securities between February 17, 2016 and August 9, 2016 both dates inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased SunPower securities during the Class Period, you have until October 17, 2016 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
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, defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) a substantial number of the Company's customers were adopting a longer-term timeline for project completion; (ii) the Company's near-term economic returns were deteriorating due to aggressive Power Purchase Agreement pricing by new market entrants; (iii) market disruption in the YieldCo environment was impacting the Company's assumptions related to monetizing deferred profits; (iv) as such, demand for the Company's products was significantly declining; (v) in response, the Company would implement a manufacturing realignment that would result in significant restructuring charges; (vi) as such, the Company's fiscal year 2016 guidance was overstated; and (vii) 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.
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] 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 Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
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SOURCE Pomerantz LLP