SAN DIEGO, June 28, 2024 (GLOBE NEWSWIRE) — Robbins LLP informs investors that a shareholder has filed a class action lawsuit on behalf of individuals and entities who purchased or otherwise acquired securities of Maxeon Solar Technologies, Ltd. (NASDAQ: MAXN) between November 15, 2023 and May 29, 2024. Maxeon is a global manufacturer and marketer of solar technology.
For more information, submit a form, email Attorney Aaron Dumas, Jr., or call us at (800) 350-6003.
The accusations: Robbins LLP is investigating allegations that Maxeon Solar Technologies, Ltd. (MAXN) misled investors about its business prospects
The lawsuit alleges that Maxeon was spun off from SunPower in 2020. The companies had a supply agreement under which SunPower was required to purchase certain minimum quantities of product and Maxeon was prohibited from selling certain modules to customers other than SunPower and could not circumvent this exclusivity clause through SunPower dealers (the “Master Supply Agreement”).
In mid-2023, Maxeon claimed that SunPower was withholding approximately $29 million in past-due invoices, and SunPower claimed that Maxeon had violated the non-circumvention clause of the Master Supply Agreement. As a result, Maxeon stopped deliveries to SunPower in July 2023. By November 2023, the two companies settled their dispute but terminated the Master Supply Agreement.
The plaintiff alleges that on May 30, 2024, 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 announced that it was “facing serious cash flow challenges” due in part to the termination of its supply agreement with SunPower. The company announced that as a result, it was forced to “negotiate commitments for significant liquidity support,” which will result in “significant dilution for existing public shareholders, with TZE (TCL Zhonghuan Renewable Energy Technology Co. Ltd.) ultimately becoming the majority shareholder.” Following this news, the company’s stock price fell 34.7%, or $1.08, to close at $2.03 per share on May 30, 2024.
According to the complaint, defendants failed to disclose during the Class Period: (1) that Maxeon was dependent on exclusive sales of certain products to SunPower; (2) that the company was unable to “aggressively ramp up” its sales following the termination of the Master Supply Agreement; (3) that revenues declined significantly as a result; and (4) that the company suffered a “severe cash flow crisis” as a result.
What now: You may be eligible to participate in the Maxeon Solar Technologies, Ltd. class action lawsuit. Shareholders who wish to serve as lead plaintiff for the class action lawsuit must file their motions with the Court by August 26, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible to receive compensation. If you choose not to take action, you may remain an absent class member. For more information, click here Here.
Representation is on a contingency basis. Shareholders pay neither fees nor expenses.
About Robbins LLP: Some law firms issuing press releases on this matter do not litigate securities class actions; Robbins LLP does. As a recognized leader in shareholder litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures and hold corporate executives accountable for misconduct since 2002. Since our founding, we have recovered over $1 billion for shareholders.
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