According to the law firm press release, Capstone develops, manufactures, markets and services microturbine technology solutions for use in stationary distributed power generation applications, including cogeneration (combined heat and power, integrated combined heat and power, and combined cooling, heat and power), renewable energy, natural resources and critical power supply.

The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose the following: (1) that BPC Engineering (“BPC”), one of the Company’s main Russian distributors, was unlikely to be able to fulfill many of its legal and financial obligations to Capstone; (2) that Capstone failed to make appropriate adjustments to its accounts receivable and backlog to account for BPC’s inability to fulfill its obligations to Capstone; (3) that Capstone issued financial statements in violation of Generally Accepted Accounting Principles (“GAAP”); (4) that the Company lacked adequate internal controls over accounting; and (5) that, as a result of the foregoing, the Company’s financial statements, as well as Defendants’ statements about Capstone’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.

On May 6, 2016, a consolidated Complaint was filed. A second amended Complaint was filed on April 28, 2017. Defendants filed a Motion to Dismiss the second amended Complaint on June 2. On February 9, 2018, the Court issued an Order denying the Motion to Dismiss.

On April 12, 2019, the parties entered into a Stipulation and Agreement of Settlement. The Court issued an Order granting preliminary approval of the Settlement on May 17. On November 15, the Court granted final approval of the Settlement and entered Final Judgment.