San Diego, CA -- (SBWIRE) -- 04/30/2014 -- An investor, who purchased shares of SolarCity Corp (NASDAQ:SCTY), filed a lawsuit in the U.S. District Court for the Northern District of California over alleged violations of Federal Securities Laws by SolarCity Corp in connection with certain allegedly false and misleading statements made between March 6, 2013 and March 18, 2014.
Investors who purchased a significant amount of shares of SolarCity Corp (NASDAQ:SCTY) between March 6, 2013 and March 18, 2014, and/or those who purchased NASDAQ:SCTY shares in March 2013 or earlier and currently hold any of those shares, have certain options and for certain investors are short and strict deadlines running. Deadline: May 27, 2014. NASDAQ:SCTY investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired securities of SolarCity Corp (NASDAQ:SCTY) between March 6, 2013 and March 18, 2014, that SolarCity Corp and certain of its officers and directors violated Federal Securities Laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
More specifically, the plaintiff claims that the defendants made false and/or misleading statements and/or failed to disclose that SolarCity Corp lacked adequate controls over financial reporting, that SolarCity Corp misclassified its reported expenses, that SolarCity Corp’s prior financial statements required restatement, and that as a result of the above, SolarCity Corp’s financial statements were materially false and misleading at all relevant times.
SolarCity Corp reported that its annual Total Revenue rose from $59.55 million in 2011 to $128.66 million in 2012 while its Net Income of $43.52 million in 2011 declined to a Net Loss of $64.19 million.
Shares of SolarCity Corp (NASDAQ:SCTY) grew from $10.73 per share in December 2012 to as high as $88.10 per share on February 28, 2014.
Then on March 3, 2014, SolarCity Corp announced a delay in the filing of its Annual Report on Form 10-K for the fiscal year ended December 31, 2013 and the expected restatement of its 2012 consolidated financial statements. On March 18, 2014, SolarCity Corp provided more information regarding its restatement. That same day, SolarCity Corp informed investors in a SEC filing that its prior financial statements for the annual periods ended December 31, 2010, 2011 and 2012 should no longer be relied upon, "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 Corp declined from over $88 per share in February to as low as $50.69 per share on April 15, 2014.
On April 28, 2014, NASDAQ:SCTY shares closed at $52.90 per share.
Those who purchased shares of SolarCity Corp (NASDAQ:SCTY) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego