NEW YORK, May 22, 2017 (GLOBE NEWSWIRE) -- Safirstein Metcalf LLP notifies purchasers of SunPower Corporation securities (NASDAQ: SPWR ) from February 17, 2016 through August 9, 2016, inclusive (the “Class Period”) of the renewed July 21, 2017 lead plaintiff deadline. The lawsuit seeks to recover damages for SunPower investors under the federal securities laws.
If you purchased or acquired SunPower securities during the Class Period, and would like more information about getting involved in the SunPower Shareholder Class Action, please call 1-800-221-0015, or email info@SafirsteinMetcalf.com . If you wish to serve as lead plaintiff, you must move the Court no later than July 21, 2017.
A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
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.
The complaint charges Defendants with violations of the federal securities laws. Specifically, the complaint alleges that Defendants made materially 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.
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