The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Stem, Inc. (“Stem” or “the Company”) (NYSE: STEM) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Stem is the subject of a research report published by Blue Orca Capital on January 11, 2023. The report alleges that “undisclosed to investors, STEM is financing its flagship customer to purchase energy storage systems from STEM. Rather than a ‘big win’ and proof that STEM could compete for big utility scale projects, we think STEM won its supposed flagship deal by surreptitiously paying for it.” The report also makes serious allegations about the Company’s software services business, claiming that “almost all of this services revenue is not from software, but from a legacy business under which STEM leases hardware to customers in what it calls ‘host customer arrangements.’ These arrangements, which STEM are winding down, are akin to hardware leases with a small software and services component, yet STEM tries to claim that 100% of the revenues from these contracts are software. Incredibly, STEM does not even own the majority of the systems being leased. 87% of the systems are owned by unconsolidated special purpose vehicles, yet STEM uses an accounting gimmick to claim their revenue as its own.”
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The class in this case has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
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The Schall Law Firm
Brian Schall, Esq.