The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of those who acquired Stem, Inc. f/k/a Star Peak Energy Transition Corp. (“Stem” or the “Company”) (NYSE: STEM) securities during the period from March 4, 2021 through February 16, 2023 (the “Class Period”). Investors have until July 11, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Stem combines advanced energy storage solutions with its AI-powered analytics platform to enable customers and partners to optimize energy use and maximize the value of renewable energy.
On January 5, 2023, Stem released an investor presentation deck that it had prepared in connection with its attendance at the Goldman Sachs Global Energy and Clean Technology Conference, wherein the Company revealed that its 2022 bookings backlog was “partially offset by [a] Stem-initiated contract cancellation (~$130M) due to partner non-performance on [an] agreed timeline,” notably, without disclosing which partner’s non-performance had led to the contract cancellation. On this news, the price of Stem shares declined by $0.75 per share, or approximately 8.78%, from $8.54 per share to close at $7.79 on January 5, 2023.
On February 16, 2023, Stem reported its 4Q 2022 results and 2023 guidance. Among other items, the Company reported 4Q revenue of $156 million, versus consensus estimates of $166 million, and issued disappointing FY 2023 revenue guidance of $550 million to $650 million, which was mostly below consensus estimates of $647 million. On this news, the price of Stem shares declined by $1.44 per share, or approximately 14.78%, from $9.74 per share to close at $8.30 on February 17, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) Legacy Stem suffered from material weaknesses in internal control over financial reporting related to accounting for deferred cost of goods sold and inventory, certain revenue recognition calculations, and internal-use capitalized software calculations; (ii) the Company had overstated Legacy Stem’s and its own post-Merger business and financial prospects; (iii) Stem’s software revenue did not make up 100% of the Company’s services revenue; and (iv) Stem had overstated the benefits expected to flow from its AP partnership.
If you purchased or otherwise acquired Stem securities, have information, or would like to learn more about this lawsuit and how it might affect your rights, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
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Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
