NEW YORK, April 06, 2022 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of SunPower Corporation (NASDAQ: SPWR), Butterfly Network, Inc. (NYSE: BFLY), GWG Holdings, Inc. (NASDAQ: GWGH), and TaskUs, Inc. (NASDAQ: TASK). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
SunPower Corporation (NASDAQ: SPWR)
Class Period: August 3, 2021 – January 20, 2022
Lead Plaintiff Deadline: April 18, 2022
On January 20, 2022, SunPower announced that it had “identified a cracking issue that developed over time in certain factory-installed connectors.” The Company “expects approximately $27 million of supplier-quality related charges in fourth quarter 2021 and approximately $4 million in the first quarter of 2022” to replace the faulty connectors.
On this news, the Company’s share price fell $3.22, or 16.9%, to close at $15.80 per share on January 21, 2022, on unusually heavy trading volume.
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 certain connectors used by SunPower suffered from cracking issues; (2) that, as a result, the Company was reasonably likely to incur costs to remediate the faulty connectors; (3) that, as a result of the foregoing, SunPower’s financial results would be adversely impacted; 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.
For more information on the SunPower class action go to: https://bespc.com/cases/SPWR
Butterfly Network, Inc. (NYSE: BFLY)
Class Period: February 12, 2021 merger; February 16, 2021 – November 15, 2021
Lead Plaintiff Deadline: April 18, 2022
According to the complaint, on February 12, 2021, Longview shareholders voted to approve the merger with Butterfly. On February 16, 2021, Longview changed its name to Butterfly Network, Inc. and began trading on the NYSE.
The complaint alleges that throughout the class period, defendants made materially false and misleading statements regarding the Company's business, operations, and compliance policies. Additionally, the Proxy and defendants failed to disclose that: (i) Butterfly had overstated its post-merger business and financial prospects; (ii) Butterfly’s financial projections failed to take into account the COVID-19 pandemic's broad consequences, which included healthcare logistical challenges, and medical personnel fatigue; and (iii) Butterfly's gross margin levels and revenue projections were less sustainable than the Company had represented.
On November 15, 2021, Butterfly announced its financial results for the third quarter of 2021. In a press release, Butterfly advised, among other things, that the Company’s total gross margin for the quarter was negative 35% and that the Company expected its revenue for 2021 to be $60-$62 million, significantly below the guidance it gave out in Q1 of $76-80 million. On an earnings call the same day, Butterfly’s CEO stated that the Company's results were impacted by “healthcare logistical challenges, and doctor, nurse, and medical technician fatigue concurrent with COVID conditions and its broad consequences.”
On this news, Butterfly’s stock price fell $1.08, or 12.55%, to close at $7.52 per share on November 15, 2021.
For more information on the Butterfly class action go to: https://bespc.com/cases/BFLY
GWG Holdings, Inc. (NASDAQ: GWGH)
Class Period: June 3, 2020 Bond Offering
Lead Plaintiff Deadline: April 19, 2022
On January 18, 2022, GWG disclosed that its Annual Report will likely be filed “later than the March 31, 2022 due date” because of “the recently disclosed decision of its independent registered public accounting firm to decline to stand for reappointment.” The Company further disclosed that it “did not make the January 15, 2022 interest payment of approximately $10.35 million and principal payments of approximately $3.25 million with respect to its L Bonds” product and that it elected to “voluntarily suspend its L Bonds sales effective as of January 10, 2022.” On this news, GWG’s stock price fell $2.17 per share, or 27.7%, to close at $5.65 per share on January 18, 2022.
Then, on January 27, 2022, The Wall Street Journal reported that GWG received a subpoena from the Securities and Exchange Commission requesting documents. The article also stated that an attorney representing multiple L Bonds investors said his clients are retail investors who bought the bonds after hearing the products were safe and would offer a comfortable income stream for their retirement, but that “they were shocked to learn that their money was used to pay old investors while the company has been under SEC investigation.”
Following this news, GWG’s stock dropped over 20% during intraday trading on January 27, 2022.
For more information on the GWG class action go to: https://bespc.com/cases/GWGH
TaskUs, Inc. (NASDAQ: TASK)
Class Period: June 11, 2021 – January 19, 2022
Lead Plaintiff Deadline: April 25, 2022
The complaint alleges that throughout the Class Period, Defendants claimed that TaskUs had “industry-leading growth and profitability” and a “simply massive” market opportunity. The complaint further alleges that Defendants touted the size of the Company's workforce and “low employee attrition levels” which “leads to lower hiring and training costs.”
These statements were materially false and misleading. On January 20, 2022, Spruce Point Capital Management, LLC (“Spruce Point”) issued a report titled “Moderating the Bull Case Content” based on its “forensic financial and accounting review” of TaskUs. Spruce Point found that TaskUs, “has a pattern of exaggerated and inflated business claims, including revenue, and is covering-up financial strain with reduced disclosures, cherry-picked market data, and non-standard key performance metrics.” Additionally, Spruce Point stated, “we find evidence of increasing strain in the relationship" between TaskUs and its largest customer Facebook “and believe margins and cash flow are set to contract more than expected.” Spruce Point also stated, “we find a pattern of [TaskUs] embellishing the size of its workforce and making overly optimistic revenue growth claims.”
This disclosure caused the value of TaskUs stock to decline dramatically, resulting in significant harm to investors.
For more information on the TaskUs class action go to: https://bespc.com/cases/TASK
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Alexandra B. Raymond, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
