SAN FRANCISCO, Feb. 12, 2020 /PRNewswire/ -- Hagens Berman urges Bloom Energy Corporation (NYSE: BE) investors who have suffered significant losses to submit their loss now to learn if they qualify to recover their investment losses. The firm is investigating possible securities fraud and certain Bloom investors may have valuable claims.
Bloom Energy Corporation (BE) Investigation:
The investigation centers on whether Bloom and senior executives misled investors about the Company's revenue recognition practices.
On Feb. 12, 2020, after the market closed, the Company admitted Bloom's previously issued financial statements for 2018, as well as those for the first three quarters of 2019, should no longer be relied on.
Bloom blamed this shocking development on improper revenue recognition for the Company's Managed Services Agreements ("MSAs"). More specifically, Bloom divulged that it had improperly recorded revenue for the impacted MSAs up front, instead of over their life as required by GAAP. Bloom admitted that as a result it: (1) overstated revenues by $165 million to $180 million; (2) expects to report an increase in operating loss in a range of $20 million to $35 million; and, (3) expects to report an increase in net loss in a range of $55 million to $75 million.
This news drove the price of Bloom shares sharply lower during aftermarket trading on Feb. 12, 2020.
"We're focused on recovering investors' substantial losses and determining whether Bloom's improper revenue recognition practices were intentional," said Reed Kathrein, the Hagens Berman partner leading the investigation.
Whistleblowers: Persons with non-public information regarding Bloom Energy should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
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Reed Kathrein, 844-916-0895
SOURCE Hagens Berman Sobol Shapiro LLP