Capstone Green Energy Corp.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Arizona on behalf of those who acquired Capstone Green Energy Corp. (“Capstone” or the “Company”) (OTC: CGRNQ) securities during the period from June 14, 2021 through September 22, 2023, inclusive (the “Class Period”). Investors have until December 12, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On August 15, 2023, Capstone announced its inability to timely file its quarterly report (Form 10-Q) with the U.S. Securities and Exchange Commission due to an ongoing review and investigations by the Audit Committee of financial reporting and other matters. On this news, the price of Capstone shares declined by $0.05, or approximately 5.32%, from $0.94 per share to close at $0.89 on August 16, 2023.
On August 18, 2023, 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 price of Capstone shares declined by $0.26, or approximately 30.95%, from $0.84 per share to close at $0.58 on August 21, 2023.
On September 22, 2023, Capstone disclosed that certain financial statements could no longer be relied upon as a result of apparent errors related to revenue recognition associated with bill and hold transactions that were identified by the Audit Committee. Then, on September 28, 2023, the Company announced it had filed for Chapter 11 bankruptcy. On this news, the price of Capstone shares declined by $0.10, or approximately 16.67%, from $0.60 per share to close at $0.50 on September 28, 2023.
On October 4, 2023, it was announced that Capstone would be delisted, and the ticker symbol changed from CGRN to CGRNQ.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) the Company had engaged in bill and hold transactions with customers; (ii) these transactions were not reported pursuant to generally accepted accounting principles (GAAP); and (iii) 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.
On August 15, 2023, Capstone announced its inability to timely file its quarterly report (Form 10-Q) with the U.S. Securities and Exchange Commission due to an ongoing review and investigations by the Audit Committee of financial reporting and other matters. On this news, the price of Capstone shares declined by $0.05, or approximately 5.32%, from $0.94 per share to close at $0.89 on August 16, 2023.
On August 18, 2023, 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 price of Capstone shares declined by $0.26, or approximately 30.95%, from $0.84 per share to close at $0.58 on August 21, 2023.
On September 22, 2023, Capstone disclosed that certain financial statements could no longer be relied upon as a result of apparent errors related to revenue recognition associated with bill and hold transactions that were identified by the Audit Committee. Then, on September 28, 2023, the Company announced it had filed for Chapter 11 bankruptcy. On this news, the price of Capstone shares declined by $0.10, or approximately 16.67%, from $0.60 per share to close at $0.50 on September 28, 2023.
On October 4, 2023, it was announced that Capstone would be delisted, and the ticker symbol changed from CGRN to CGRNQ.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) the Company had engaged in bill and hold transactions with customers; (ii) these transactions were not reported pursuant to generally accepted accounting principles (GAAP); and (iii) 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.