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On February 8, 2022, Kaplan Fox & Kilsheimer LLP’s (“Kaplan Fox”) client, Stadium Capital LLC, was appointed Lead Plaintiff and the Court approved its selection of Kaplan Fox as Lead Counsel in a pending securities class action against View, Inc. (“View” or the “Company”) (NASDAQ: VIEW), a Silicon Valley-based smart window company. The action also alleges claims against View’s Chief Executive Officer, Rao Mulpuri, and its former Chief Financial Officer, Vidul Prakash.
The Class Period commences on November 30, 2020, with the announcement that View and CF Finance Acquisition Corp. II (NASDAQ: CFII), a special purpose acquisition company, entered a merger agreement that would ultimately result in View becoming a publicly traded company upon closing of the transaction. In Securities and Exchange Commission filings to effectuate the merger, it was reported that View recorded a one-time warranty accrual of $24.5 million (during the nine-months ended September 30, 2019) related to “faulty materials” used in manufacturing View’s insulated glass units. By March 8, 2021, the merger was completed, and View shares began to trade on the Nasdaq Stock Market on March 9, 2021.
On August 16, 2021, after the market closed, View announced that it “began an independent investigation concerning the adequacy of the company’s previously disclosed warranty accrual.” Further, the Company disclosed that the Audit Committee retained independent legal and accounting advisors and that it was postponing the release of its Q2 2021 financial results.
Following this news, View’s shares fell $1.26 per share, over 24%, to close at $3.92 per share on August 17, 2021.
The Company has recently announced an intention to issue, during the first quarter of 2022, a restatement of its 2019, 2020 and Q1 2021 financial statements, as well as to issue its Q2 2021, Q3 2021 and full year 2021 financial statements. Pending issuance of the restatement, the Company previously estimated, in a November 9, 2021 press release, that the corrected liabilities associated with its warranty-related obligations would be in the range of approximately $46-$70 million, $38-$55 million and $40-$58 million as of December 31, 2019, December 31, 2020 and March 31, 2021, respectively. The November 9, 2021 announcement described the Company’s previously reported liabilities related to warranty-related obligations and costs of revenue as “materially misstated.”
The initial complaint filed prior to the Lead Plaintiff’s appointment alleges that, during the Class Period, Defendants violated Section 10(b) of the Securities Exchange Act of 1934 by, among other things, failing to disclose to investors that View had not properly accrued warranty costs related to its products, that there were material weaknesses in View’s internal controls and that, as a result, the Company’s financial results were misstated and positive statements made about View’s business, operations and prospects were materially false or misleading.
During February 2022, Lead Plaintiff and Defendants will submit a schedule to the Court for the filing of an amended complaint and the timing for Defendants’ response to thereto.
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