NASDAQ GS
SPWR

SunPower Corporation

Shareholder Securities Fraud Litigation

Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against SunPower Corporation (NASDAQ GS: SPWR)

Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Northern District of California on behalf of all persons or entities that purchased the common stock of SunPower Corporation (“SunPower” or the “Company”) (NASDAQ GS: SPWR) between February 17, 2016 and August 9, 2016, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).

If you purchased shares of SunPower during the Class Period, or purchased shares prior to the Class Period and still hold SunPower, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 2 Righter Parkway, Suite 120, Wilmington, DE 19803 at (888) 969-4242; by e-mail to info@rl-legal.com.

The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects.  Specifically, the Complaint alleges that the defendants concealed from the investing public that: (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 Purchase Power Agreement (“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.  As a result of defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.

According to the Complaint, on August 9, 2016, SunPower issued a press release announcing its second quarter 2016 financial results.  Therein, the Company 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 a manufacturing realignment which the Company stated 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, shares of SunPower dropped over 30%, closing at $10.31 per share on August 10, 2016, on heavy trading volume.

If you wish to serve as lead plaintiff, you must move the Court no later than October 17, 2016.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  Any member of the proposed 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.

Attorney advertising.  Prior results do not guarantee a similar outcome.