CAPSTONE GREEN ENERGY CORP. – Twersky Law Group, a highly regarded and reputable law firm based in New York, wishes to inform investors about a significant development in the form of a class action lawsuit against Capstone Green Energy Corp. (“Capstone” or “the Company”) (NASDAQ: CGRNQ) and certain officers of the company. This lawsuit has been filed on behalf of all individuals and entities that purchased or otherwise acquired Capstone securities June 14, 2021 through September 22, 2023 (the “Class Period”). Investors who acquired Capstone securities during this defined timeframe are strongly encouraged to participate in this case by contacting atara@twerskylawgroup.com. The deadline to file a motion for appointment of lead plaintiff is December 12, 2023.
The fundamental objective of this class action lawsuit is to recover for the benefit of investors who purchased Capstone securities during the Class Period, the losses they sustained as a consequence of the misleading statements made by Defendants in violation of the federal securities laws.
ALLEGATIONS AGAINST CAPSTONE
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, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
ABOUT CAPSTONE
- Capstone Green Energy Corp. is an American company that specializes in providing clean and sustainable energy solutions, particularly through microturbine technology. The company was formerly known as Capstone Turbine Corporation but changed its name to reflect its broader focus on green energy and environmental sustainability.
- Capstone Green Energy designs, manufactures, and sells microturbines that use various fuels, including natural gas, biogas, diesel, and more, to generate electricity and thermal energy. These microturbines are known for their efficiency, low emissions, and versatility, making them suitable for a wide range of applications, including distributed power generation, combined heat and power (CHP), and microgrid systems.
- The company’s technology is used in various industries, including manufacturing, healthcare, hospitality, and data centers, to provide reliable and sustainable on-site power generation. Capstone’s microturbines are designed to help customers reduce energy costs and their carbon footprint while increasing energy efficiency.
JOIN THIS CASE
It is important to note that a class action lawsuit has already been filed in connection with these allegations. Therefore, for those individuals who suffered financial losses in their investments in Capstone during the Class Period, there is a limited opportunity to seek appointment as a lead plaintiff. This process entails requesting the Court to designate them as the primary representative on behalf of the entire class. The deadline for submitting such a request is December 12, 2023. It is important to emphasize that while becoming a lead plaintiff can offer certain advantages, participation in the recovery process and the potential for financial compensation does not mandate serving as a lead plaintiff.
Twersky Law Group, a distinguished legal firm renowned for its attorneys expertise in handling securities fraud class actions and shareholder derivative suits, who have a long-standing track record of successfully recovering significant sums of money for investors nationwide. With an unwavering commitment to seeking justice for their clients, the firm’s attorneys are resolute in pursuing fair compensation on behalf of those affected by alleged securities law violations. As with any legal matter, it is essential to understand that this announcement constitutes attorney advertising. Past case outcomes and results achieved do not guarantee similar outcomes in this particular case.
Investors who believe they may qualify as potential class members in the class action lawsuit against Capstone are strongly encouraged to reach out directly to the firm for further information and assistance. The knowledgeable legal professionals at Twersky Law Group stand ready to provide guidance and support to investors seeking to protect their rights and pursue the recovery they deserve.
