Maxeon Solar Technologies, Ltd.

Registration Deadline:

08/26/2024

A securities class action has been filed in the USDC N.D.CA. against Maxeon Solar Technologies, Ltd. (MAXN) (“Maxeon” or the “Company”), on behalf of all persons or entities that purchased or otherwise acquired Maxeon securities between November 15, 2023 and May 29, 2024, both dates inclusive (the “Class Period”).

 

Maxeon is a global manufacturer and marketer of solar technology. Maxeon went public in August 2020 through a strategic spin off from SunPower Corp. (“SunPower”). SunPower was Maxeon’s largest customer, representing 26.7% of the Company’s total revenue for fiscal year 2022. Maxeon and SunPower maintained a supply agreement under which, among other things, SunPower was obligated to purchase certain minimum product volumes; and Maxeon was prohibited from selling certain modules to customers other than SunPower and could not circumvent that exclusivity provision via SunPower dealers (the “Master Supply Agreement”).

 

 

The claim arises on May 30, 2024, before the market opened, when Maxeon announced financial results for first quarter 2024 in a press release, reporting a 41% year-over-year decline in revenue to $187.5 million.

 

The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors:

(1) that Maxeon relied on the exclusive sales of certain products to SunPower;

(2) that, following the termination of the Master Supply Agreement, the Company was unable to “aggressively ramp sales”;

(3) that, as a result, revenue substantially declined;

(4) that, as a result, the Company suffered a “serious cash flow” crisis; and

(5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis, thereby harming investors.

 

As a result, the Company’s share price fell 34.7%, or $1.08, to close at $2.03 per share on May 30, 2024, on unusually heavy trading volume.

 

If you purchased Maxeon securities during the class period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.

 

About Lowey Dannenberg

Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.

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