A number of shareholder rights attorneys have sued SunPower Corporation (NASDAQ:SPWR) over violation of securities laws. The legal actions against SunPower are coming after the company trimmed its sales and earnings for the current year.
SunPower is now looking for 2016 sales in the band of $2.8 to $3 billion, which is below the consensus estimate of $3.3 billion. Though the company originally expected net income in the range of $0 to $50 million, it is now seeing a net loss in the band of $175 to $125 million.
SunPower’s new power deployment guidance stands at 1.55 GW at the midpoint, lower than 1.75 GW it previously guided.
Class action lawsuits
Shareholder rights attorneys at Gainey McKenna & Egleston have filed a class action lawsuit against SunPower in the U.S. District Court for Northern District of California. The lawsuit has been filed on behalf of investors who purchased common shares of SPWR between Feb 17, 2016 and Aug 9, 2016.
The attorneys at Goldberg Law PC and Law Offices of Vincent Wong have also filed class action lawsuits against SunPower. They are also presenting investors who acquired shares of SPWR in the class period between Feb 17 and Aug 9, 2016.
The law firms have asked investors who suffered losses to contact them to discuss their rights regarding the class action suits.
The complaints against SunPower
SunPower Corporation is accused of several violations including issuing false and misleading statements to investors. In particular, the company is said to have intentionally failed to reveal that its near-term economic returns were weakening. The company also allegedly refused to let investors know that demand for its products was shrinking. SunPower is also accused of failing to disclose that a large number of its customers were choosing long-term project completion timelines.
When push came to shove, SunPower had to implement a manufacturing realignment that ended up generating significant charges. What followed next was that the company cut its 2016 guidance, something that the attorneys say indicated that the original guidance was overstated.
After a string of allegedly misleading statements, shares of SunPower Corporation plummeted when the true details entered the market, causing losses to investors.