Robbins LLP – Shareholder Rights Attorneys – Reminds MAXN Investors of the Pending Securities Fraud Class Action Against Maxeon Solar Technologies, LTD

Core Viewpoint - A class action lawsuit has been filed against Maxeon Solar Technologies, Ltd. for allegedly misleading investors about its business prospects and financial health during a specific period [1][2]. Group 1: Allegations and Background - Maxeon Solar Technologies was spun off from SunPower in 2020, maintaining a Master Supply Agreement that restricted its sales to other customers [2]. - In mid-2023, a dispute arose between Maxeon and SunPower, with Maxeon claiming SunPower owed approximately $29 million, while SunPower alleged a breach of the non-circumvention clause [3]. - The dispute led to Maxeon ceasing shipments to SunPower in July 2023, and by November 2023, the Master Supply Agreement was terminated following a settlement [3]. Group 2: Financial Impact - On May 30, 2024, Maxeon reported a 41% year-over-year decline in revenue, totaling $187.5 million, and indicated it was facing a serious cash flow challenge due to the termination of the supply agreement [4]. - The company disclosed it needed to negotiate significant liquidity support, which would result in substantial dilution for existing shareholders, with TCL Zhonghuan Renewable Energy Technology Co. Ltd. becoming a controlling shareholder [4]. - Following this announcement, Maxeon's share price dropped by 34.7%, or $1.08, closing at $2.03 per share [4]. Group 3: Class Action Details - The complaint alleges that during the class period, Maxeon failed to disclose its reliance on exclusive sales to SunPower, its inability to ramp up sales post-termination of the agreement, and the resulting revenue decline and cash flow crisis [5]. - Shareholders interested in participating as lead plaintiffs must file motions by August 26, 2024, although participation is not required for recovery [6].