Lawsuit filed for certain investors in shares of Capstone Green Energy Corporation (OTC: CGRNQ)

An investor, who purchased shares of Capstone Green Energy Corporation (OTC: CGRNQ), filed a lawsuit over alleged violations of Federal Securities Laws by Capstone Green Energy Corporation in connection with certain allegedly false and misleading statements made between June 14, 2021 and September 22, 2023.

Investors who purchased shares of Capstone Green Energy Corporation (OTC: CGRNQ) have certain options and for certain investors are short and strict deadlines running. Deadline: December 12, 2023. Capstone Green Energy Corporation (OTC: CGRNQ) investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Van Nuys, CA based Capstone Green Energy Corporation develops, manufactures, markets, and services microturbine technology solutions for use in stationary distributed power generation and distribution networks applications worldwide.

On August 15, 2023, after the closing of trading, Capstone Green Energy Corporation announced its inability to timely file a Form 10-Q due to an "ongoing review and investigations by the Audit Committee of financial reporting and other matters." On this news, the Company's stock price fell $0.05, or 5%, to close at $0.89 per share August 16, 2023, on unusually high trading volume.

Then, on August 18, 2023, after trading hours, Capstone Green Energy Corporation announced it had entered into a Fifth Amendment to its Amended and Restated Note Purchase Agreement among the Company, Goldman Sachs Specialty Lending Group, L.P. and a purchaser party. Capstone also reported receipt of a notice from the NASDAQ exchange that the Company was not in compliance with listing requirements due to its failure to file periodic financial reports.

Then, on September 22, 2023, after trading hours, Capstone Green Energy Corporation disclosed that certain financial statements could no longer be relied upon "as a result of apparent errors primarily related to revenue recognition associated with bill and hold transactions that were identified in the course a review by the Audit Committee[.]" The Company disclosed there were "numerous instances where bill and hold transactions did not appear to meet the requirements for revenue recognition under GAAP."

Then, on September 28, 2023, Capstone Green Energy Corporation announced it had filed for Chapter 11 bankruptcy.

Then, on October 4, 2023, after trading hours, it was announced that the company would be delisted, and the ticker symbol changed from CGRN to CGRNQ.

Shares of Capstone Green Energy Corporation (OTC: CGRNQ) declined from $2.25 per share in early 2023 to as low as $0.16 per share on October 06, 2023.

The plaintiff claims that between June 14, 2021 and September 22, 2023, the Defendants failed to disclose to investors: (1) that the Company had engaged in "bill and hold transactions" with customers; (2) that these transactions were not reported pursuant to generally accepted accounting principles ("GAAP"); (3) that, "as a result of apparent errors primarily related to revenue recognition associated with bill and hold transactions" the Company lacked a reasonable basis to report certain financial results and was reasonably likely to restate its financial statements; and (4) that, as a result of the foregoing, Defendant's positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Those who purchased shares of Capstone Green Energy Corporation (OTC: CGRNQ) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.