STEVENSON, Md., May 22, 2017 (GLOBE NEWSWIRE) -- The law firm of Brower Piven, A Professional Corporation, gives notice of the re-opening of the lead plaintiff selection process in connection with the consolidated securities class action lawsuit pending against SunPower Corporation (“SunPower” or the “Company”) and certain of its officers (“Defendants”). The caption for the consolidated action is: In re SunPower Corporation Securities Litigation , Case No. 16-cv-04710-RS, pending in the United States District Court for the Northern District of California before the Honorable Richard Seeborg, U.S.D.J.
The action against SunPower was initially filed on August 16, 2016, on behalf of a proposed class consisting of persons and entities that acquired SunPower (NASDAQ: SPWR ) securities between February 17, 2016, and August 9, 2016, inclusive (the “Class”). A second, substantially similar class action was filed on August 26, 2016 in the same court.
On December 9, 2016, the Court consolidated the two pending actions, appointed Mundeog Seol as lead plaintiff and approved his selection of class counsel. On March 31, 2017, Mr. Seol and his counsel moved the Court to withdraw as lead plaintiff and class counsel. On May 15, 2017, the Court granted the motion of Mr. Seol and counsel to withdraw on the condition that they issue a new Notice in accordance with the Private Securities Litigation Reform Act of 1995, 15 U.S.C. §78u-4(a)(3).
The complaint charges Defendants with violations of the federal securities laws. Specifically, the complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose: (1) that a substantial number of the Company's customers were adopting a longer-term timeline for project completion; (2) that the Company's near-term economic returns were deteriorating due to aggressive PPA pricing by new market entrants; (3) that market disruption in the YieldCo environment was impacting the Company's assumptions related to monetizing deferred profits; (4) that, as such, demand for the Company's products was significantly declining; (5) that, in response, the Company would implement a manufacturing realignment that would result in significant restructuring charges; (6) that, as such, the Company’s fiscal year 2016 guidance was overstated; and (7) that, 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. The August 9 press release 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 (“PPA”)] pricing by new market entrants,” and “continued market disruption in the YieldCo environment.” The Company also announced on that day that there would be a manufacturing realignment which 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.
Right to Seek Appointment as Lead Plaintiff
If you acquired SunPower securities between February 17, 2016, and August 9, 2016, inclusive, you may move the Court no later than 60 days from the date of this Notice to serve as lead plaintiff. If you are appointed lead plaintiff in the action, you will have the right, subject to Court approval, to select counsel to represent the Class.
CONTACT: Charles J. Piven Brower Piven, A Professional Corporation 1925 Old Valley Road Stevenson, Maryland 21153 Telephone: 410-415-6616 hoffman@browerpiven.com
