Core Points - The former CFO of View, Vidul Prakash, is facing claims from the U.S. Securities and Exchange Commission (SEC) for negligently allowing the company to understate the costs associated with replacing defective smart windows [1][3] - A federal judge ruled that the SEC could potentially prove that Prakash's actions violated federal securities laws, rejecting his defense [1][4] Company Overview - View went public in March 2021 through a merger valued at $1.6 billion with a special-purpose acquisition company backed by Cantor Fitzgerald [2] - The company filed for Chapter 11 bankruptcy in April 2024 and has agreed to go private [2] Financial Misstatements - The SEC's case, initiated in July 2023, centers around a defective sealing component in View's smart windows, which are designed to adjust to sunlight and are commonly used in office buildings [3] - View allegedly understated its window-related liabilities by $25 million in 2019 and $28 million in 2020 by failing to disclose shipping, installation, and manufacturing costs [3] Legal Proceedings - The judge indicated that a reasonable jury could find that Prakash breached his duty of care, contributing to the alleged financial misstatements [4] - Following the allegations, View replaced Prakash as CFO in November 2021 and decided to restate over two years of financial results [4] - View settled with the SEC without admitting wrongdoing and was not fined, which reflects the company's cooperation with the investigation [4]