San Diego, CA -- (SBWire) -- 05/31/2023 --An investor, who purchased shares of Stem, Inc. (NYSE: STEM), filed a lawsuit over alleged violations of Federal Securities Laws by Stem, Inc. f/k/a Star Peak Energy Transition Corp. in connection with certain allegedly false and misleading statements.
Investors who purchased shares of Stem, Inc. (NYSE: STEM) have certain options and for certain investors are short and strict deadlines running. Deadline: July 11, 2023. NYSE: STEM investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
San Francisco, CA based Stem, Inc. operates as a digitally connected and intelligent energy storage network provider in the United States and internationally.
On December 4, 2020 Stem, Inc. announced that it had entered into a definitive agreement to merge with Star Peak Energy Transition Corp., a special purpose acquisition corporation (known as a SPAC or blank-check company), that would result in a combined company with an estimated equity value of approximately $1.35 billion.
On February 24, 2022, Stem, Inc. announced that it had entered into a strategic partnership with Available Power ("AP") with a "[v]alue of award expected to exceed $500 million across the project portfolio" and that "provide[d] Stem exclusive rights to 100 standalone energy storage projects in Texas".
On January 11, 2023, Blue Orca Capital ("Blue Orca") issued a report alleging undisclosed issues with Stem's business and financial prospects, including, among other things, that the Company had overstated its software revenues by falsely claiming that 100% of its services revenue line was attributable to software revenues. Thereafter, on January 12, 2023, Stem issued a response, purporting to refute Blue Orca's claims. In doing so, however, the Company never expressly refuted Blue Orca's claims that software revenue did not make up 100% of the Company's services revenue. Separately, Stem's response to the Blue Orca report clarified that the Company's "canceled . . . booking of approximately $135 million in the fourth quarter of 2022" - as first disclosed in Stem's January 5, 2023 investor presentation deck - was "attributable solely to DevCo projects with [AP]" and that "[w]e have not recorded any revenue from any [AP] projects and there are no additional projects in the backlog with this former partner."
Finally, on February 16, 2023, Stem, Inc. reported its 4Q 2022 results and 2023 guidance. The Company reported 4Q revenue of $156 million, versus consensus estimates of $166 million, and issued disappointing FY 2023 revenue guidance of $550 million to $650 million.
Shares of Stem, Inc. (NYSE: STEM) declined from $18.01 per share on September 15, 2022, to as low as $3.715 per share on May 2, 2023.
The plaintiff claims that, the Offering Documents that were filed in connection with the Merger and that the Defendants between March 4, 2021 and February 16, 2023 made false and/or misleading statements and/or failed to disclose that, Legacy Stem suffered from material weaknesses in internal control over financial reporting related to accounting for deferred cost of goods sold and inventory, certain revenue recognition calculations, and internal-use capitalized software calculations;, that the Company had overstated Legacy Stem's and its own post-Merger business and financial prospects, that Stem's software revenue did not make up 100% of the Company's services revenue, that Stem had overstated the benefits expected to flow from its AP partnership, and that as a result, the Offering Documents and Defendants' public statements between March 4, 2021 and February 16, 2023 were materially false and/or misleading and failed to state information required to be stated therein.
Those who purchased shares of Stem, Inc. (NYSE: STEM) have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com
About The Shareholders Foundation
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
NYSE:STEM Investor Alert: Lawsuit Alleges Securities Laws Violations by Stem, Inc.
A lawsuit was filed on behalf of investors in Stem, Inc. (NYSE:STEM) shares over alleged securities laws violations.