NEW YORK, Oct. 23, 2023 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, reminds investors that a class action lawsuit has been filed against Capstone Green Energy Corporation (“Capstone” or the “Company”) (NASDAQ: CGRN) (OTC: CGRNQ) in the United States District Court for the Central District of California on behalf of all persons and entities who purchased or otherwise acquired Capstone securities between June 14, 2021 and September 22, 2023, both dates inclusive (the “Class Period”). Investors have until December 12, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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On August 15, 2023, after the closing of trading, the Company announced its inability to timely file a Form 10-Q due to an “ongoing review and investigations by the Audit Committee of financial reporting and other matters.” On this news, the Company’s stock price fell $0.05, or 5%, to close at $0.89 per share August 16, 2023, on unusually high trading volume. The Company’s stock price continued to fall the next trading session by $0.05, or 5%, to close at $0.84 per share on August 17, 2023.
Then, on August 18, 2023, after trading hours, the Company announced it had entered into a Fifth Amendment to its Amended and Restated Note Purchase Agreement among the Company, Goldman Sachs Specialty Lending Group, L.P. and a purchaser party. Capstone also reported receipt of a notice from the NASDAQ exchange that the Company was not in compliance with listing requirements due to its failure to file periodic financial reports. On this news, the Company’s stock price fell $0.26, or 30%, to close at $0.58 per share on August 21, 2023, on unusually high trading volume.
Then, on September 22, 2023, after trading hours, the Company disclosed that certain financial statements could no longer be relied upon “as a result of apparent errors primarily related to revenue recognition associated with bill and hold transactions that were identified in the course a review by the Audit Committee[.]” The Company disclosed there were “numerous instances where bill and hold transactions did not appear to meet the requirements for revenue recognition under GAAP.”
Then, on September 28, 2023, the Company announced it had filed for Chapter 11 bankruptcy. On this news, the Company’s stock price fell $0.10, or 17%, to close at $0.50 per share on September 28, 2023.
Then, on October 4, 2023, after trading hours, it was announced that the company would be delisted, and the ticker symbol changed from CGRN to CGRNQ.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company had engaged in “bill and hold transactions” with customers; (2) that these transactions were not reported pursuant to generally accepted accounting principles (“GAAP”); (3) that, “as a result of apparent errors primarily related to revenue recognition associated with bill and hold transactions” the Company lacked a reasonable basis to report certain financial results and was reasonably likely to restate its financial statements; and (4) that, as a result of the foregoing, Defendant’s 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 Capstone shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. 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, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
