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CGRN.US
id: 849
Capstone Green Energy (CGRN) "Bill-And-Hold" Case
C.D. California
Court2:23-cv-08659
Case number14 Jun 2021
Class period Start22 Sept 2023
Class period End12 Dec 2023
Lead Plaintiff motion deadlineOn 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.
Case Status
Lead Plaintiff Appointed
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
22 September 2023
Filing date
13 October 2023
Lead Plaintiff Deadline
12 December 2023