A class-action suit has been filed against View Inc. alleging violations of federal securities law.
On August 18, the law firm Bragar Eagel and Squire announced a class-action lawsuit filed in the United States District Court for the Northern District of California on behalf of all who purchased or acquired View securities between November 30, 2020, and August 16, 2021.
Asif Mehedi is listed on the court documents as a person who will testify at deposition and trial, if necessary.
Mehedi pursues claims against View under the Securities Exchange Act of 1934, according to court documents.
In March, View announced the completion of its business combination with CF Finance Acquisition Corp. II, a special purpose acquisition company sponsored by Cantor Fitzgerald L.P. CF II stockholders approved the business combination in a special meeting held on March 5, 2021. View was named the surviving public entity. On March 9, 2021, View was listed on the Nasdaq Stock Market under the ticker symbol “VIEW” and its warrants on the Nasdaq Stock Market under the ticker symbol “VIEWW.”
According to court documents, “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.’ On this news, [View’s] share price fell $1.26, or over 24%, to close at $3.92 per share on August 17, 2021, on unusually heavy trading volume.”
View made materially false and/or misleading statements and failed to disclose material adverse facts about its business, operations and prospects, according to the complaint. The documents say that View failed to disclose to investors that it had not properly accrued warranty costs related to its product, there was a material weakness in its internal controls over accounting and financial reporting related to warranty accrual, and that, as a result, the company’s financial results for prior periods were misstated.
The complaint alleges that because of View’s wrongful acts and omissions, and the decline in the market value of its securities, the plaintiff and others represented have suffered significant losses and damages.
At press time, View Inc. had not responded to requests for comments.
According to Bragar Eagel and Squire, investors have until October 18, 2021, to apply to be appointed as lead plaintiff in the lawsuit.