If you have purchased shares of SolarCity Corp (NASDAQ:SCTY) between March 6, 2013 and March 18, 2014, call 1-800-934-2921 right now to protect your rights.
Filing deadline: 05/27/2014
The lawsuit alleges that SolarCity Corporation violated Federal Securities Laws by making misleading and false statements between the dates of March 6, 2013 and March 18, 2014. The plaintiff specifically claims that the company did not reveal that they lacked sufficient controls over financial reporting and misclassified reporting expenses. As a result, the lawsuit notes that SolarCity Corporation's financial statements were materially misleading and false at all relevant times, and that prior financial statements require restatement.
SolarCity Corporation indicated that the company's annual total revenue increased from $59.55 million in 2011 to $128.66 million in 2012. Although the company realized a net income of $43.52 million in 2011, a net loss of $64.19 million occurred in 2012. Shares of SolarCity Corporation increased from $10.73 per share in December of 2012 to a high of $88.10 per share on February 28, 2014. On March 3, 2014, the company indicated that there would be both a delay in the filing of their Annual Report on Form 10-K (for the fiscal year end of December 31, 2013) and the anticipated restatement of their 2012 consolidated financial statements.
On March 18, 2014, SolarCity Corporation supplied additional information regarding their restatement and informed investors in a SEC filing that their prior financial statements (relating to annual periods ending December 31 of 2010, 2011 and 2012) are no longer reliable. The company specifically stated that "as a result of (i) an error related to the presentation of non-cash stock based compensation costs in the consolidated statement of cash flows for the portion of such costs that were capitalized as part of the costs of solar energy systems leased and to be leased; and (ii) an error related to the classification of certain of the noncontrolling interests in subsidiaries after the Company concluded that certain noncontrolling interests with redemption rights should be presented in temporary equity and not permanent equity as had previously been disclosed. These matters also impacted the 2013 interim and 2012 annual and interim consolidated financial statements referred to in our Form 8-K filed on March 3, 2014". Shares of SolarCity Corporation have subsequently declined from more than $88 per share in February to as low as $56.62 per share on March 27, 2014.
Own shares of SolarCity Corp (NASDAQ:SCTY)? Contact us to protect your rights.
If you have purchased shares of SolarCity Corp (NASDAQ:SCTY) between March 6, 2013 and March 18, 2014, call 1-800-934-2921 right now to protect your rights. Complete the form on this page or call attorney Bill Kyros at 1-800-934-2921 right now to protect your rights.