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STEM.US
id: 721

STEM M&A Case

N.D. California
Court
23-CV-02329
Case number
04 Mar 2021
Class period Start
16 Feb 2023
Class period End
11 Jul 2023
Lead Plaintiff motion deadline
On February 16, 2023, Stem reported its 4Q 2022 results and 2023 guidance. Among other things, the Company reported 4Q revenue of $156 million, versus consensus estimates of $166 million, and issued disappointing FY 2023 revenue guidance of $550 million to $650 million, which was mostly below consensus estimates of $647 million.

On this news, Stem’s stock price fell 14.78%.

Going back, the current Company appeared after the Merger consummated on April 28, 2021, between STPK Merger Sub Corp. and Stem, Inc., a private Delaware corporation. The next day the combined Company’s common stock and warrants began publicly trading on the NYSE under the ticker symbol “STEM”.

Since then $STEM share price eroded over 75% of its value, significantly injuring investors.

Taking all facts and representations into account, Investors have reasons to suspect that M&A Offering Documents were negligently prepared and, as a result, contained untrue statements of important information and the Company and its Leaders made materially false and misleading statements regarding the Company’s business, operations, and compliance policies.

Specifically, the Offering Documents and the Company made false and/or misleading statements and/or failed to disclose that:
  1. Stem suffered from material weaknesses in internal control over financial reporting related to accounting for the deferred cost of goods sold and inventory, certain revenue recognition calculations, and internal-use capitalized software calculations;
  2. the Company had overstated Legacy Stem’s and its own post-Merger business and financial prospects;
  3. Stem’s software revenue did not make up 100% of the Company’s services revenue;
  4. Stem had overstated the benefits expected to flow from its AP partnership; and
  5. as a result, the Offering Documents and public statements were materially false and/or misleading and failed to state the information required to be stated therein.
Case Status
Lead Plaintiff Appointed
Alleged Offence
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Negligence
Omissions
Suspected Party
Directors
Management
Shareholder
Investment Bank
Service Provider
Security Type
Stocks
Trade Direction
Long
Shock Event Date
28 April 2021
Filing date
12 May 2023
Lead Plaintiff Deadline
11 July 2023
Judge
Hon. Maxine M. Chesney
Collecting participants…

Stem Inc

Stem, Inc. operates as a digitally connected and intelligent energy storage network provider in the United States and internationally. The company offers energy storage systems sourced from origina...

    Ticker
    STEM.US
    ISIN
    US85859N1028
    CIK
    1758766
    Sector
    Technology
    Industry
    Software - Infrastructure
    Country
    USA
    Address
    100 California Street, San Francisco, CA, United States, 94111