NEW YORK, April 25, 2014 /PRNewswire/ -- Pomerantz LLP has filed a class action lawsuit against SolarCity Corporation ("SolarCity" or the "Company") (NASDAQ: SCTY) and certain of its officers. The class action, filed in United States District Court, Northern District of California, and docketed under 3:14-cv-01435, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired SolarCity securities between March 6, 2013 and March 18, 2014, both dates inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased SolarCity securities during the Class Period, you have until May 27, 2014 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 [email protected] or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
SolarCity purports to sell renewable energy to its customers at prices below utility rates, primarily through the leasing or sale of solar energy systems.
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) the Company lacked adequate controls over financial reporting; (ii) the Company misclassified its reported expenses; (iii) the Company's prior financial statements required restatement; and (iv) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On March 3, 2014, the Company announced that it had discovered an error in its financial reporting, disclosing tens of millions in overhead expenses that it had incorrectly classified. On this news, SolarCity securities declined $1.70 per share, or over 2%, to close at $83.26 per share on March 3, 2014.
On March 18, 2014, the Company issued a press release providing more information regarding its restatement. That same day, the Company filed an 8-K report informing investors that its prior financial statements for the annual periods ended December 31, 2010, 2011 and 2012 should no longer be relied upon, "as a result of (i) an error related to the presentation of non-cash stock based compensation costs in the consolidated statement of cash flows for the portion of such costs that were capitalized as part of the costs of solar energy systems leased and to be leased; and (ii) an error related to the classification of certain of the noncontrolling interests in subsidiaries after the Company concluded that certain noncontrolling interests with redemption rights should be presented in temporary equity and not permanent equity as had previously been disclosed. These matters also impacted the 2013 interim and 2012 annual and interim consolidated financial statements referred to in our Form 8-K filed on March 3, 2014."
On this news, the Company's shares fell $4.40, or almost 6%, to close on March 19, 2014 at $72.70 per share on unusually high trading volume.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, 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 70 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
SOURCE Pomerantz LLP