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Case Status:    ONGOING  
—On or around 07/01/2024 (Date of last review)
Current/Last Presiding Judge:  
Hon. Edward M Chen

Filing Date: June 27, 2024

According to the Complaint, Maxeon Solar Technologies, Ltd. is a global manufacturer and marketer of solar technology. Maxeon went public in August 2020 through a strategic spin off from SunPower Corp. SunPower was Maxeon’s largest customer, representing 26.7% of the Company’s total revenue for fiscal year 2022. Maxeon and SunPower maintained a supply agreement under which, among other things, SunPower was obligated to purchase certain minimum product volumes; and Maxeon was prohibited from selling certain modules to customers other than SunPower and could not circumvent that exclusivity provision via SunPower dealers.

In mid-2023, Maxeon and SunPower engaged in a dispute wherein Maxeon alleged SunPower was withholding approximately $29 million in past due invoices and SunPower alleged that Maxeon was in breach of the Master Supply Agreement’s non-circumvention clause. As a result, Maxeon ceased shipments to SunPower in July 2023. By November 2023, the two companies settled their dispute but terminated the Master Supply Agreement.

The Complaint 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 Complaint alleges Defendants failed to disclose to investors: (1) that Maxeon relied on the exclusive sales of certain products to SunPower; (2) that, following the termination of the Master Supply Agreement, the Company was unable to “aggressively ramp sales”; (3) that, as a result, revenue substantially declined; (4) that, as a result, the Company suffered a “serious cash flow” crisis; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

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