NEW YORK, Nov. 19, 2023 /PRNewswire/ — Pomerantz LLP is investigating claims on behalf of investors of Capstone Green Energy Corporation (“Capstone” or the “Company”) (NASDAQ: CGRN). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether Capstone and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On August 15, 2023, after the closing of trading, the Company 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. The Company’s stock price continued to fall the next trading session by $0.05, or 5%, to close at $0.84 per share on August 17, 2023.
Then, on August 18, 2023, after trading hours, the Company 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.
On this news, the Company’s stock price fell $0.26, or 30%, to close at $0.58 per share on August 21, 2023.
Then, on September 22, 2023, after trading hours, the Company 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, the Company announced it had filed for Chapter 11 bankruptcy.
On this news, the Company’s stock price fell $0.10, or 17%, to close at $0.50 per share on September 28, 2023.
Finally, 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.
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CONTACT:Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980
SOURCE Pomerantz LLP
