SatCon Technology Corporation Hit By Investor Lawsuit Over Alleged Securities Laws Violations
An investor in SatCon Technology Corporation (NASDAQ: SATC) filed a lawsuit in U.S. District Court for the District of Massachusetts against SatCon Technology Corp. over alleged Violations of Federal Securities Laws.
According to the securities class action complaint the plaintiff alleges on behalf of investors who purchased common stock of Satcon Technology between March 4, 2010 and July 5 2011, that SatCon Technology Corp. and certain of its officers violated the Securities Exchange Act of 1934 by issuing between March 4, 2010 and July 5 2011 materially false and misleading statements.
While SatCon Technology’s annual Total Revenue rose from $33.03million in 2007 to $173.30million in 2010. It had to report over the past four years Net Losses ranging from $11.61million to $29.96million. Its first quarter quarterly Revenue rose from $14.73million to $62million, however, its first quarter Net Loss only decreased from $6.10million to $2.14million.
Shares of SatCon Technology Corporation (NASDAQ:SATC) rose from as low as $1.19 during February 2009 to as high as $5.13 in January 2011.
Then on July 5, Satcon Technology Corporation announced its preliminary unaudited results for revenue and gross margin for its second quarter ended June 30, 2011.
Satcon Technology Corporation said that based on preliminary financial data and subject to the final closing of its financial statements, Satcon Technology Corporation expects second-quarter 2011 revenue will be between $45 million and $47 million, compared with its previously announced guidance of $50 million to $60 million. The company also revised its gross margin estimate for the quarter, which is now expected to be between 7% and 11%, below the company's previously announced guidance of 17% to 20%.
Satcon Technology Corporation also said that it conducted a global restructuring of its workforce that resulted in a 15% reduction in staff.
Shares of SatCon Technology Corporation (Public, NASDAQ:SATC) fell on July 5, 2011 to as low as $1.91 per share and closed last week’s trading at $2.01 per share.