NEW YORK, June 29, 2024 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, announces that a class action lawsuit has been filed against Maxeon Solar Technologies, Ltd. (“Maxeon” or the “Company”) (NASDAQ: MAXN) in the U.S. District Court for the Northern District of California on behalf of all persons and entities who purchased or otherwise acquired Maxeon securities between November 15, 2023 and May 29, 2024, both dates inclusive (the “Class Period”). Investors have until August 27, 2024 to request that the Court appoint them as lead plaintiff in the lawsuit.
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On May 30, 2024, before the stock market opened, Maxeon announced its first quarter 2024 financial results in a press release, reporting a 41% year-over-year decline in revenue to $187.5 million. The company said it was “facing severe cash flow challenges” due in part to the termination of its supply agreement with SunPower. The company said as a result, it was forced to “negotiate commitments for significant liquidity support,” which will result in “significant dilution to existing public shareholders, with TZE (TCL Zhonghuan Renewable Energy Technology Co. Ltd.) ultimately becoming the majority shareholder.”
On this news, the Company’s stock price fell 34.7%, or $1.08, to close at $2.03 per share on May 30, 2024, amid unusually heavy trading volume.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and failed to disclose material adverse facts about the Company’s business, operations and prospects. Specifically, Defendants failed to disclose to investors: (1) that Maxeon was dependent on exclusive sales of certain products to SunPower; (2) that following the termination of the Master Supply Agreement, the Company was unable to “aggressively ramp up sales”; (3) that as a result, revenues declined significantly; (4) that as a result, the Company suffered a “severe cash flow crisis”; and (5) that as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations and prospects were materially misleading and/or lacked a reasonable basis.
If you purchased or otherwise acquired Maxeon shares and suffered a loss, are a long-term shareholder, have information, would like to learn more about these claims, or have any questions about this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at [email protected]Telephone (212) 355-4648 or by Fill out this contact formThere are no costs or obligations to you.
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation in state and federal courts across the country. For more information about the firm, visit www.bespc.com. Attorney advertising. Past results do not guarantee similar results.
Contact information:
Bragar Eagle & Squire, PC
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
[email protected]
www.bespc.com
