Law Offices of Howard G. Smith reminds investors of the upcoming July 11, 2023 deadline to file a lead plaintiff motion in the case filed on behalf of investors who purchased Stem, Inc. (“Stem” or the “Company”) (NYSE: STEM) f/k/a Star Peak Energy Transition Corp. (“STPK”) securities: (a) pursuant and/or traceable to the Offering Documents issued in connection with the merger consummated April 28, 2021; and/or between March 4, 2021 and February 16, 2023, inclusive (the “Class Period”).
Investors suffering losses on their Stem investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to email@example.com.
On March 15, 2021, Stem disclosed that it had previously undisclosed material weaknesses in its control over financial reporting related to “accounting for . . . deferred cost of goods sold and inventory,” “the review of certain revenue recognition calculations,” and “the review of internal-use capitalized software calculations.” On this news, Stem’s stock price fell $1.19, or 3.4%, to close at $34.24 per share on March 15, 2021, thereby injuring investors.
On January 11, 2023, Blue Orca Capital published a report alleging various undisclosed issues with Stem’s business and financial prospects, including that the Company had overstated its software revenues by falsely claiming that the entirety of its services revenue line was attributable to software revenues.
On, February 16, 2023, Stem released its fourth quarter 2022 results and its 2023 guidance, reporting a fourth quarter revenue of $156 million, missing consensus estimates by $10 million, and issued disappointing 2023 revenue guidance, missing consensus estimates by as much as $97 million. On this news, Stem’s stock price fell $1.44, or 14.8%, to close at $8.30 per share on February 17, 2023, thereby injuring investors further.
The complaint filed in this class action 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, the Offering Documents and Defendants failed to disclose to investors that: (1) 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; (2) the Company had overstated Legacy Stem’s and its own post-Merger business and financial prospects; (3) Stem’s software revenue did not make up 100% of the Company’s services revenue; (4) Stem had overstated the benefits expected to flow from its AP partnership; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased or otherwise acquired Stem securities during the Class Period, you may move the Court no later than July 11, 2023 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at www.howardsmithlaw.com.
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