SunPower Financial Investigation Timeline: SEC Subpoena, Accounting Firm Resignation, and More
July 6, 2024 by Joe Panettieri
SunPower is facing an SEC investigation, and Ernst & Young has resigned as the solar company's independent accountant amid concerns about SunPower's financial practices, an SEC filing on July 3, 2024, revealed.
SunPower, founded in 1985, is based in Richmond, California. The company develops photovoltaic solar energy generation systems and battery energy storage products.
SunPower's stock ($SPWR) fell nearly 80% from early July 2023 through July 5, 2024. The stock decline involves a mix of interest rate market pressures, competitive pressures, and concerns about the company's financial practices.
Here is a timeline tracking SunPower's financial and leadership status. Check back regularly for ongoing timeline updates.
SunPower Financial and Leadership Timeline
July 3, 2024: One day before a U.S. national holiday, SunPower in an SEC filing disclosed that Ernst & Young had resigned the accounting relationship on June 27, 2024. The same SEC filing revealed that the solar company received an SEC subpoena in February 2024.
June 27, 2024: Ernst & Young resigned the SunPower accounting relationship. EY advised the solar company's Audit Committee that "information has come to its attention that has made EY unwilling to be associated with the financial statements prepared by management." The solar company disclosed EY's resignation from the business in an SEC filing on July 3, 2024.
February 28, 2024: The SEC issued a document subpoena to SunPower. The SEC investigation involves "aspects of the Company’s revenue recognition practices, with a focus on the periods covered by the Affected Financial Statements and the Company’s fourth fiscal quarter of 2023." The solar company disclosed the SEC investigation in a July 3, 2024, SEC filing.
Tom Werner, principal executive officer, SunPower
February 27, 2024: SunPower CEO Peter Faricy departed the company on February 26, 2024, the company announced. Executive Chairman Tom Werner took on the additional role of Principal Executive Officer, and the board began a search for a permanent CEO, the company disclosed. In a prepared statement, Werner thanked Faricy for his contributions to the solar company.
January 2024 - Restructuring: SunPower announced a restructuring plan designed to cut the solar energy company's operating costs.
December 18, 2023 - Credit Warning: A SunPower SEC filing warned that the company violated a credit agreement tied to belated earnings results.
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