SAN DIEGO and SAN MATEO, Calif., May 21, 2014 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of SolarCity Corporation (NASDAQGS: SCTY) has filed a federal securities fraud class action complaint in the U.S. District Court for the Northern District of California. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between March 6, 2013 and March 18, 2014 (the "Class Period"). SolarCity designs, sells, leases, and installs solar energy systems for residential and commercial customers.
SolarCity Is Accused of Incorrectly Accounting for Overhead Expenses
According to the complaint, shares of SolarCity fell multiple times beginning with an initial decline of $1.70, to close at $83.26 per share on March 3, 2014, following an announcement by the company that tens of millions of dollars in sales overhead expenses had been incorrectly classified as leasing expenses. As a result of this error, SolarCity would be forced to reallocate those expenses impacting its 2013 and 2012 GAAP financial statements. Shortly thereafter, on March 19, 2014, SolarCity's shares fell an additional $4.40 per share, or nearly 6%, to close at $72.70, in response to an announcement by the company specifying that the previously announced errors would cause a net impact of $16.2 million for the first three quarters of 2013, and $20.4 million for 2012.
The complaint further alleges that SolarCity's financial statements for the annual periods ended December 31, 2010, 2011, and 2012 should no longer be relied upon due to errors in the presentation of non-cash compensation costs, and the reclassification of certain non-controlling subsidiaries from permanent equity to temporary equity. SolarCity failed to disclose these facts to investors, causing the company's stock to trade at artificially inflated prices during the class period.SolarCity Shareholders Are Encouraged to Contact Shareholder Rights Law Firm Robbins Arroyo LLP If you invested in SolarCity and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the information form on the firm's shareholder rights blog: www.robbinsarroyo.com/shareholders-rights-blog/solarcity/ Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Attorney Advertising. Past results do not guarantee a similar outcome.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV