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id: 849, Created by Stan Vick, Scout
Capstone Green Energy (CGRN) "Bill-And-Hold" Case
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On September 28, 2023, Capstone Green Energy (CGRN) announced it had filed for Chapter 11 bankruptcy.
On this news, $CGRN fell 17% to $0.50 per share.
Earlier, from August 15, 2023, to September 22, 2023, Capstone issued a sequence of statements concerning its financial reporting, resulting in a decrease in $CGRN stock value.
- On August 15, 2023, the Company announced its inability to timely file 10-Q due to an “ongoing review and investigations by the Audit Committee of financial reporting and other matters.” On this news, $CGRN fell 5%.
- Then, on August 18, 2023, Capstone reported receipt of a notice from the NASDAQ exchange that the Company was not in compliance with listing requirements. On this news, $CGRN fell 30%.
- On September 22, 2023, 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 of a review by the Audit Committee”.
Taking all representations into account, investors have reasons to suspect Capstone's executives of providing inflated revenue projections by failing to properly account for 'bill-and-hold' transactions.
Failure to Disclose,
Shock Event Date
22 September 2023
13 October 2023
Lead Plaintiff Deadline
12 December 2023