SAN DIEGO & CHATSWORTH, Calif.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a class action complaint was filed in the U.S. District Court for the Central District of California. The complaint alleges that officers and directors of Capstone Turbine Corp. (NASDAQCM: CPST) violated the Securities Exchange Act of 1934 between November 7, 2013 and November 5, 2015, by making materially false and misleading statements about Capstone's business prospects. Capstone develops, manufactures, markets, and services microturbine technology solutions for use in stationary distributed power generation applications worldwide.
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Capstone Discloses Disappointing Second Quarter 2015 Results
According to the complaint, from 2013 to 2015, Capstone issued a series of press releases touting positive operating results, along with filings with the U.S. Securities and Exchange Commission reaffirming those results. However, the complaint alleges that these statements were misleading because Capstone failed to disclose that BPC Engineering ("BPC"), one of the company's main Russian distributors, was unlikely to be able to fulfill many of its legal and financial obligations to Capstone, and that it failed to make appropriate adjustments to its accounts receivable and backlog to account for this. The complaint further alleges that Capstone issued financial statements in violation of Generally Accepted Accounting Principles (GAAP) and that the company lacked adequate internal controls over accounting.
On October 1, 2015, Capstone issued a press release disclosing that its preliminary second quarter earnings were notably below management's expectations and analysts' consensus estimates due to delayed orders and shipments. It further disclosed that it received no significant payments from its Russian distributor, who until recently was one of its largest customers. On this news, shares of Capstone fell $0.09, or more than 25% per share, to close at $0.25 on October 1, 2015. Then, on November 6, 2015, after Capstone disclosed a second quarter 2015 net loss of $7.9 million, or $0.02 per share for the quarter, Capstone stock fell $0.02 per share, or more than 7%, to close at $0.20.
Capstone Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in 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.
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