About five months after the case was first filed, Notices of Motion were recognized by a judge for the appointment of a lead plaintiff and lead counsel in the class-action suit filed against View Inc. for alleged violations of federal securities law.
On October 18, 2021, Sweta Sonthalia and Stadium Capital LLC each filed a Motion to Appoint Lead Plaintiff and Lead Counsel. Sonthalia and Stadium Capital were directed to jointly file a chart listing calculations for their losses.
On January 3, U.S. District Judge Beth Labson Freeman requested the parties to jointly file a chart listing numerical calculations for their losses in support of their motions. The chart was submitted on January 5.
In March, View announced the completion of its business combination with CF Finance Acquisition Corp. II, and was named the surviving public entity. View was then listed on the Nasdaq Stock Market.
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.