SAN DIEGO, May 26, 2023 (GLOBE NEWSWIRE) —
Robbins LLP reminds investors that a shareholder filed a class action on behalf of purchasers of Stem, Inc. STEM STEM.WT, STPK.U))) securities pursuant to the Offering Documents in connection with the April 28, 2021 merger between Legacy Stem and Star Peak Energy Transition Corp. or between March 4, 2021 and February 16, 2023. Stem purports to operate as a digitally connected and intelligent energy storage network provider in the U.S. and internationally.
For more information, submit a form, email Aaron Dumas, Jr., or give us a call (800) 350-6003.
What is this Case About: Stem, Inc. (STEM) Misled Investors in its Offering Documents in Connection with its Merger
According to the complaint, the Offering Documents and defendants made false and/or misleading statements and/or 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; (iv) Stem had overstated the benefits expected to flow from its AP partnership; and (v) as a result, the Offering Documents and defendants’ public statements throughout the class period were materially false and/or misleading and failed to state information required to be stated therein.
On January 11, 2023, Blue Orca Capital issued a report alleging various undisclosed issues with Stem’s business and financial prospects, including, among other things, that the Company had overstated its software revenues by falsely claiming that 100% of its services revenue line was attributable to software revenues.
Then, on February 16, 2023, Stem reported disappointing 4Q 2022 results and 2023…