NEW YORK, USA: Murray, Frank & Sailer LLP has filed a class action Complaint in the United States District Court for the Northern District of California on behalf of a class consisting of all persons or entities who purchased the securities of SunPower Corp. between April 17, 2008 and November 16, 2009, inclusive.
The Complaint charges SunPower and certain of the Company’s executive officers with violations of federal securities laws. SunPower designs, manufactures and delivers high-performance solar electric systems worldwide for residential, commercial and utility-scale power plant customers.
The Complaint alleges that throughout the Class Period defendants knew or recklessly disregarded that their public statements concerning SunPower’s financial performance were materially false and misleading. Specifically, defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company made unsubstantiated accounting entries during the Class Period; (2) that, as a result, the Company’s financial results were overstated during the Class Period; (3) that the Company’s financial results were not prepared in accordance with Generally Accepted Accounting Principles (“GAAP”); (4) that the Company lacked adequate internal and financial controls; and (5), as a result of the above, the Company’s financial statements were materially false and misleading at all relevant times.
On November 16, 2009, SunPower shocked investors when it announced an internal investigation by its Audit Committee of certain unsubstantiated accounting entries related to cost of goods sold in the Company’s Philippines operations.
SunPower disclosed that the Company’s Audit Committee concluded that the Company’s previously issued interim financial statements for each of the 2009 quarterly periods, the previously reported financial results for the fiscal year ending December 28, 2008, the financial information in its quarterly reports on Form 10-Q for the 2009 quarters, the financial information in the 2008 annual report on Form 10-K, and the guidance provided by the Company for the 2009 fiscal year, should no longer be relied upon.
On this news, shares of SunPower’s Class A common stock declined $5.04 per share, or approximately 18.51%, to close on November 17, 2009, at $22.19 per share, on heavy volume, and shares of SunPower’s Class B common stock declined $4.43 per share, approximately 18.54%, to close on November 17, 2009, at $19.47 per share, on heavy volume.
Plaintiff seeks to recover damages on behalf of class members and is represented by Murray, Frank & Sailer LLP, a law firm with extensive experience in prosecuting shareholder lawsuits.