LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces an investigation of Stem, Inc. (“Stem” or the “Company”) (NYSE: STEM) on behalf of investors concerning the Company’s possible violations of federal securities laws.
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On March 15, 2021, Stem disclosed that it had previously undisclosed material weaknesses in its control over financial reporting related to “accounting for . . . deferred cost of goods sold and inventory,” “the review of certain revenue recognition calculations,” and “the review of internal-use capitalized software calculations.” On this news, Stem’s stock price fell $1.19, or 3.4%, to close at $34.24 per share on March 15, 2021, thereby injuring investors.
On January 11, 2023, Blue Orca Capital published a report alleging various undisclosed issues with Stem’s business and financial prospects, including that the Company had overstated its software revenues by falsely claiming that the entirety of its services revenue line was attributable to software revenues.
On, February 16, 2023, Stem released its fourth quarter 2022 results and its 2023 guidance, reporting a fourth quarter revenue of $156 million, missing consensus estimates by $10 million, and issued disappointing 2023 revenue guidance, missing consensus estimates by as much as $97 million. On this news, Stem’s stock price fell $1.44, or 14.8%, to close at $8.30 per share on February 17, 2023, thereby injuring investors further.
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If you purchased Stem securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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