NEW YORK, Jan. 8, 2016 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Capstone Turbine Corporation ("Capstone" or the "Company")(NASDAQ: CPST) and certain of its officers. The class action, filed in United States District Court, Central District of California, and docketed under 15-cv-09155, is on behalf of a class consisting of all persons or entities who purchased Capstone securities between November 7, 2013 and November 5, 2015 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 Capstone securities during the Class Period, you have until Jan 15, 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.
Capstone develops, manufactures, markets and services microturbine technology solutions for use in stationary distributed power generation applications, including cogeneration (combined heat and power, integrated combined heat and power, and combined cooling, heat and power), renewable energy, natural resources, and critical power supply. In addition, the Company's microturbines can be used as battery charging generators for hybrid electric vehicle applications. Microturbines can purportedly produce power on-site in parallel with the electric grid or stand alone when no utility grid is available.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose: (1) that BPC Engineering ("BPC"), one of the Company's main Russian distributors, was unlikely to be able to fulfill many of its legal and financial obligations to Capstone; (2) that Capstone failed to make appropriate adjustments to its accounts receivable and backlog to account for BPC's inability to fulfill its obligations to Capstone; (3) that, as such, Capstone issued financial statements in violation of Generally Accepted Accounting Principles ("GAAP"); (4) that, as a result of the foregoing, the Company's financial statements, as well as Defendants' statements about Capstone's business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On October 1, 2015, Capstone issued a press release disclosing that its preliminary second quarter earnings were "notably below management's expectations and analysts' consensus estimates as continued headwinds in the oil and gas market and a strong U.S. dollar delayed orders and shipments in the quarter." The Company further disclosed that it "received no significant payments from its Russian distributor, who until recently was one of [its] largest customers."
On this news, shares of Capstone fell $0.09 per share, or more than 25%, to close at $0.25 on October 1, 2015, on unusually heavy trading volume.
On November 5, 2015, after the market closed, Capstone disclosed its second quarter 2015 results. The Company disclosed a net loss of $7.9 million, or $0.02 per share, for the quarter.
On this news, Shares of Capstone fell $0.02, or more than 7%, to close at $0.20 on November 6, 2015, 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 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