SunPower Corporation (SPWR) Misled Investors Regarding a Material Weakness in the Company’s Internal Control Over Financial Reporting
A shareholder filed a class action lawsuit on behalf of persons and entities that purchased or otherwise acquired SunPower Corporation (NASDAQ: SPWR) securities between March 9, 2023 and October 24, 2023. SunPower is a solar technology and energy services provider.
According to the complaint, during the class period, defendants failed to disclose that (1) due to a material weakness in its internal control over financial reporting, the Company had inaccurately reported cost of revenue and inventory metrics, and (2) as a result, the Company was reasonably likely to incur significant charges to restate prior reporting.
The complaint alleges that on October 24, 2023, SunPower filed a Form 8-K with the U.S. Securities and Exchange Commission revealing material weakness in its internal controls and the impending restatement of certain financial statements. The 8-K disclosed that investors should no longer rely upon the audited financial statements for the period ended January 1, 2023, and the unaudited financial statements for Q1 and Q2 2023. The Company added that it planned to restate these financial statements. SunPower explained that it had overstated the value of consignment inventory of certain microinverter components, causing it to understate the associated cost of revenue. On this news, the Company’s share price fell by 18.1% to close at $4.06 per share on October 25, 2023.
What Now: Similarly situated shareholders may be eligible to participate in the class action against SunPower Corporation. Shareholders who want to act as lead plaintiff for the class should contact Robbins LLP. Plaintiffs must file their lead plaintiff papers by December 26, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
