STEM INVESTOR ALERT

Robbins Geller Rudman & Dowd LLP Announces that Stem, Inc. f/k/a Star Peak Energy Transition Corp. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit - Seite 2

But as the Stem class action lawsuit alleges, the merger’s offering documents and defendants throughout the class period 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) Stem 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 Stem’s services revenue; and (iv) Stem had overstated the benefits expected to flow from its AP partnership.

On March 15, 2021, Stem revealed that Legacy Stem suffered from various previously undisclosed material weaknesses in its internal control over financial reporting related to, inter alia, “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.

Then, on February 24, 2022, Stem reported full year 2021 earnings per share of -$0.96, missing consensus estimates by $0.05, as well as revenue of $127.37 million, missing consensus estimates by $19.58 million. On this news, Stem’s stock price fell by more than 21%.

Thereafter, on January 5, 2023, Stem released an investor presentation deck that it had prepared in connection with its attendance at the Goldman Sachs Global Energy and Clean Technology Conference, wherein Stem revealed that its 2022 bookings backlog was “partially offset by [a] Stem-initiated contract cancellation (~$130M) due to partner nonperformance on [an] agreed timeline.” On this news, Stem’s stock price fell by nearly 9%.

Finally, on February 16, 2023, Stem reported fourth quarter 2022 revenue of $156 million, versus consensus estimates of $166 million, and issued disappointing full year 2023 revenue guidance of $550 million to $650 million, which was mostly below consensus estimates of $647 million. On this news, Stem’s stock price fell by nearly 14.8%, further damaging investors.

Robbins Geller has launched a dedicated SPAC Task Force to protect investors in blank check companies and seek redress for corporate malfeasance. Comprised of experienced litigators, investigators, and forensic accountants, the SPAC Task Force is dedicated to rooting out and prosecuting fraud on behalf of injured SPAC investors. The rise in blank check financing poses unique risks to investors. Robbins Geller’s SPAC Task Force represents the vanguard of ensuring integrity, honesty, and justice in this rapidly developing investment arena.