Attention SolarCity Corporation Investors: SolarCity Corporation Misled Investors According to a Recently Filed Class Action
Robbins Arroyo LLP announces that an investor of SolarCity Corporation (NASDAQGS: SCTY) has filed a federal securities fraud class action complaint in the U.S. District Court for the Northern District of California. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between March 6, 2013 and March 18, 2014 (the “Class Period”). SolarCity designs, sells, leases, and installs solar energy systems for residential and commercial customers.
SolarCity Is Accused of Incorrectly Accounting for Overhead Expenses
According to the complaint, shares of SolarCity fell multiple times beginning with an initial decline of $1.70, to close at $83.26 per share on March 3, 2014, following an announcement by the company that tens of millions of dollars in sales overhead expenses had been incorrectly classified as leasing expenses. As a result of this error, SolarCity would be forced to reallocate those expenses impacting its 2013 and 2012 GAAP financial statements. Shortly thereafter, on March 19, 2014, SolarCity’s shares fell an additional $4.40 per share, or nearly 6%, to close at $72.70, in response to an announcement by the company specifying that the previously announced errors would cause a net impact of $16.2 million for the first three quarters of 2013, and $20.4 million for 2012.
The complaint further alleges that SolarCity’s financial statements for the annual periods ended December 31, 2010, 2011, and 2012 should no longer be relied upon due to errors in the presentation of non-cash compensation costs, and the reclassification of certain non-controlling subsidiaries from permanent equity to temporary equity. SolarCity failed to disclose these facts to investors, causing the company’s stock to trade at artificially inflated prices during the class period.
SolarCity Shareholders Are Encouraged to Contact Shareholder Rights Law Firm Robbins Arroyo LLP
If you invested in SolarCity and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.