$19.7M SunPower Securities Class Action Settlement Reached

$19.7M SunPower Securities Class Action Settlement Reached

By Andrea Gressman

In recent securities lawsuit news it has been reported that SunPower Corp. (SPWR) has reached a $19.7 million securities class action lawsuit settlement.

The SunPower securities lawsuit was filed on behalf of those who purchased SunPower securities between the dates of April 17, 2008 until November 16, 2009. The securities class action lawsuit not only names SunPower as the defendant but a number of their personnel as well, including CEO Thomas Werner, CFO Dennis Arriola, and former CFO Emmanuel T. Hernandez

SunPower was recently investigated for securities fraud and in that investigation it was allegedly determined that SunPower employees falsely reported certain entries in their accounting. The securities lawsuit stated “materially misstated the company’s reported financial results”. The securities lawsuit attorneys went on to state, “After the markets closed on November 16, 2009, SunPower disclosed that an ‘internal review’ had uncovered ‘unsubstantiated accounting entries’ in the Company’s prior financial reports that understated the Company’s cost of goods sold in 2009 and possibly 2008. The Company also announced it was working to determine if any restatements of its 2009 interim financial reports and its 2008 annual report would be necessary.”  It has also been reported that on November 16, 2009 SunPower’s stock dropped 20% that day alone.
 
SunPower announced in March of 2010 that the company would restate the company’s financial records for each of the quarters in question, including the first 3 quarters of the year ending in January 3, 2010, and also for the year that ended December 28, 2008. After SunPower completed their internal investigation the securities lawsuit attorney representing those in the class action said, “The investigation determined that SunPower finance personnel had falsified certain accounting entries, and that additional accounting ‘errors’ had been committed. SunPower also admitted material weaknesses in the Company’s internal controls over financial reporting.”

SunPower have also maintained the position that they have “met all their legal obligations,” but the company has still agreed to a significant settlement of $19.7 million to those who filed the securities lawsuit against them.  This settlement is expected to be reflected in SunPower’s Q4 2012 financial results. The company responded to the settlement news by saying, “We have decided it is more prudent to focus our efforts on growing new markets and continuing to expand our leading residential market share position.”

SunPower is a United States based company that provides photovoltaics.

Were you a victim of stock fraud, securities fraud or investment fraud? You may have a case to file class action lawsuit against the parties responsible. Visit the Securities Fraud, Stock Fraud Investment Class Action Lawsuit Investigation for details.

Updated January 7th, 2013

All securities fraud class action and lawsuit news updates are listed in the Stocks & Securities section of Top Class Actions