NEW YORK, Oct. 07, 2016 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed 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 16-cv-05806, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired SolarCity securities between May 5, 2015 and February 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 SolarCity securities during the Class Period, you have until October 14, 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 rswilloughby@pomlaw.com 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.
[Click here to join this class action]
SolarCity provides solar energy systems for commercial and residential use. The Company sells solar energy systems directly to customers, and offers financing. SolarCity also sells solar power lease contracts whereby the Company absorbs the cost of the solar panels and installation, but charges the customer for the power produced by the solar energy system.
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 that: (i) demand for the Company’s products was weakening; (ii) the Company was concealing the weakening demand from investors; and (iii) as a result of the foregoing, Defendants’ statements about SolarCity’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On October 29, 2015, the Company announced in its Q3 2015 quarterly letter to investors that it was lowering its full year 2015 guidance, stating “we are estimating installations of 280 to 300 MW in the fourth quarter. . . . This is below the low end of our prior annual guidance . . . .” The Company further announced that it was lowering its target growth rate for fiscal year 2016 from 70% down to 41%. SolarCity also disclosed that MW Booked for the quarter was 345 MW, down from 395 MW Booked in Q2 2015.
On this news, the Company’s stock price fell $8.42 per share, or 22%, to close at $29.65 on October 30, 2015, on unusually heavy trading volume.
On February 9, 2016, the Company issued its quarterly investor letter for Q4 2015. Therein, the Company disclosed that it fell short of its previously issued fiscal year 2015 installation guidance. On February 10, 2016, the Company filed its Annual Report on Form 10-K for fiscal year 2015. Therein, the Company disclosed that it would no longer report its Nominal Contracted Payments metric. The Company also reported cumulative energy contracts quarter-to-quarter growth and cumulative customer quarter-to-quarter growth that fell far below the previously reported trend.
On this news, the Company’s stock price fell $7.72 per share, or 29%, to close at $18.63 on February 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
CONTACT: Robert S. Willoughby Pomerantz LLP rswilloughby@pomlaw.com
