Overview

• SunPower Corporation's shares plummeted after the company issued a 'going concern' warning, raising concerns about the company going out of business.
• The company's failure to file timely 3Q 2023 financial results constituted a breach of its credit agreement, leading lenders to potentially recall $65.3 million in debt.
• SunPower is facing an investor class action suit alleging that the company misrepresented and concealed inaccurate reporting of cost of revenue and inventory metrics.
• The company admitted to material weaknesses in its internal control over financial reporting, and the value of consignment inventory of microinverter components had been overstated in the range of approximately $16 million to $20 million.
• SunPower's shares have lost approximately 75% in value year to date.