SunPower Corp. $11M Securities Class Action Settlement

William C. Gendron

Editor in Chief

Published

March 24, 2026 1:22 PM

Updated

March 24, 2026

Who can file a claim?

The settlement includes all persons and entities who purchased or otherwise acquired SunPower Corp. common stock or purchased or traded other SunPower securities between May 3, 2023, and July 19, 2024, inclusive, and allegedly suffered damages as a result.

Additional details

Both individuals and entities can be class members.
The actual beneficial owner or a legal representative must submit the claim.
All joint owners must sign the claim form.
Executors, administrators, guardians, conservators and trustees may submit claims on behalf of others and must provide proof of authority.
Each separate legal entity or separately managed account must submit a separate claim.

How much can class members get?

The total settlement fund is $11,000,000. The amount each class member will receive depends on several factors:

The number of valid claims submitted
The number and type of SunPower securities purchased or acquired during the class period
The timing of each purchase, sale and holding
The total recognized losses of all claimants

The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation:

The estimated average recovery is approximately $0.20 per eligible share before deductions for court-approved fees and expenses. After estimated deductions of $0.07 per eligible security, the net average recovery is approximately $0.13 per share.
Actual payments may be higher or lower depending on individual claims and the total number of valid claims.
The settlement administrator will calculate each class member's payment based on the recognized loss amount assigned to each transaction.
Recognized loss amounts depend on purchase and sale timing. The settlement administrator will calculate them using the court-approved plan of allocation, which applies different formulas depending on when class members purchased and sold securities.

For shares purchased during the class period and sold before July 26, 2023, the recognized loss is $0.
For shares sold between July 26, 2023, and July 18, 2024, the recognized loss is the artificial inflation on the date of purchase minus the artificial inflation on the date of sale.
For shares sold between July 19, 2024, and Oct. 16, 2024 (the 90-day lookback period), the recognized loss is the lesser of the artificial inflation at purchase or the purchase price minus the 90-day lookback value on the date of sale (Page 8 of the settlement notice).
For shares held as of the close of trading on Oct. 16, 2024, the recognized loss is the lesser of the artificial inflation at purchase or the purchase price minus $0.22 (the average closing price during the 90-day lookback period).

Claims for SunPower call options purchased and put options sold (written) during the class period are limited to 3% of the net settlement fund combined.
The settlement administrator will set any recognized loss that calculates to a negative number to $0.
If total recognized claims exceed the net settlement fund, the settlement administrator will reduce payments on a pro rata basis.
Class members whose payment would be less than $10 will not receive a payout.

How to claim a SunPower securities class action settlement payment

Class members may file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The claim deadline is July 26, 2026.

Settlement administrator's mailing address: SunPower Securities Settlement, c/o claims administrator, 1650 Arch St., Suite 2210, Philadelphia, PA 19103

Proof or documentation required to submit a claim

All class members must provide the last four digits of their Social Security number or full taxpayer identification number. They must also provide holdings and transaction information, including:

Number of SunPower securities held as of the close of trading on May 2, 2023
Trade dates for purchases, acquisitions and sales from May 3, 2023, through Oct. 16, 2024
Number of securities purchased, acquired or sold
Price per share or per contract and total purchase or sale price
Number of securities held as of the close of trading on Oct. 16, 2024

Class members must also provide documentation to support their transactions in SunPower securities. Acceptable proof includes:

Broker confirmation slips
Monthly brokerage account statements
Authorized statements from a broker containing transactional and holding information

Payout options

Physical check

$11 million settlement fund

The $11,000,000 settlement fund includes:

Settlement administration costs: To be determined
Attorneys' fees: Up to $3,666,667
Attorneys' expenses: Up to $500,000
Service awards to plaintiffs: Up to $7,500 total
Payments to eligible class members: Remainder of the fund

Important dates

Deadline to file a claim: July 26, 2026
Opt-out deadline: Aug. 4, 2026
Fairness hearing: Aug. 25, 2026

When is the SunPower securities class action settlement payout date?

The settlement administrator will issue payments after it processes all claims and the court resolves any appeals and grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged three former SunPower Corp. officers made materially false and misleading statements and omissions regarding the company's financial health in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The plaintiffs claimed these statements artificially inflated SunPower's stock price and caused investor losses when the company issued corrective information.

The defendants denied all allegations of wrongdoing but agreed to settle to avoid the costs, risks and delays of continued litigation.