SAN DIEGO, July 15, 2024 (GLOBE NEWSWIRE) — Robbins LLP reminds investors that a shareholder filed a class action on behalf of persons and entities that purchased or otherwise acquired Maxeon Solar Technologies, Ltd. (NASDAQ: MAXN) securities 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 give us a call at (800) 350-6003.
The Allegations: Robbins LLP is Investigating Allegations that Maxeon Solar Technologies, Ltd. (MAXN) Misled Investors Regarding its Business Prospects
The complaint alleges that Maxeon was spun off from SunPower in 2020. The companies maintained a supply agreement under which SunPower was obligated to purchase certain minimum product volumes and Maxeon was prohibited from selling certain modules to customers other than SunPower and could not circumvent that exclusivity provision via SunPower dealers (the “Master Supply Agreement”).
In mid-2023, Maxeon alleged SunPower was withholding approximately $29 million in past due invoices and SunPower alleged that Maxeon was in breach of the Master Supply Agreement’s non-circumvention clause. As a result, Maxeon ceased shipments to SunPower in July 2023. By November 2023, the two companies settled their dispute, but terminated the Master Supply Agreement.
Plaintiff alleges that on May 30, 2024, Maxeon announced financial results for first quarter 2024 in a press release, reporting a 41% year-over-year decline in revenue to $187.5 million. The Company disclosed that it was “facing a serious cash flow challenge” as the result of, in part, the termination of the SunPower supply agreement. The Company revealed that, as a result, it was forced to “negotiate[] commitments for significant liquidity support” which will result in “substantial dilution to existing public shareholders, with TZE [TCL Zhonghuan Renewable Energy Technology Co. Ltd.] ultimately becoming a controlling shareholder.” On this news, the Company’s share price fell 34.7%, or $1.08, to close at $2.03 per share on May 30, 2024.
According to the complaint, during the class period, defendants failed to disclose: (1) that Maxeon relied on the exclusive sales of certain products to SunPower; (2) that, following the termination of the Master Supply Agreement, the Company was unable to “aggressively ramp sales”; (3) that, as a result, revenue substantially declined; and (4) that, as a result, the Company suffered a “serious cash flow” crisis.
What Now: You may be eligible to participate in the class action against Maxeon Solar Technologies, Ltd. Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by August 26, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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