(Bloomberg) — SunPower Corp. shares posted their biggest drop in seven weeks after the troubled company’s accountant resigned amid allegations of misconduct by top executives.
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The company’s shares fell about 18%, their biggest daily drop since May 15, and were trading at $2.20 at 12:58 p.m. in New York. The company’s shares have fallen more than 50% this year amid a broader downturn in the rooftop solar market.
Ernst & Young notified the company on June 27 that it had resigned as SunPower’s independent accountant because it did not want to be associated with financial statements prepared by management, according to a filing the company filed late Wednesday. The accountant cited allegations of misconduct involving senior management who held roles that ignored financial reporting. SunPower is looking to hire a new independent accountant, according to the statement.
SunPower also said in the filing that it received a subpoena from the U.S. Securities and Exchange Commission in February regarding its revenue recognition practices. The company did not respond to inquiries Friday.
The disclosures come amid a challenging year for SunPower. The company said in April it needed to rewrite its financial results for nearly two years. It also replaced its CEO and COO, defaulted on a credit agreement in late 2023 after an earlier earnings review delayed results, and is now grappling with an installation slump in California, its home state and the nation’s largest solar market.
(Updates with accountant search in third paragraph.)
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