After a months-long process to name a lead plaintiff and appoint a lead counsel in the case against View Inc. for allegedly violating federal security law, the Northern District Court of California has finally put that process to rest. On February 23, 2022, U.S. District Judge Beth Labson Freeman denied View investor Sweta Sonthalia’s Motion for Reconsideration of the order, and appointed Stadium Capital and Kaplan Fox & Kilsheimer as lead plaintiff and counsel, respectively. According to documents, Sonthalia purchased View securities between November 30, 2020 and August 16, 2021.

“Because I suffered substantial losses as a result of my transactions in View securities during the Class Period, I am motivated to seek to obtain the best possible result for it and the proposed class,” Sonthalia says.

Sonthalia is 43 years old, resides in Singapore and has more than three years of investing experience in the securities markets and purchased View securities based on her analysis of the security. Sonthalia asserts a larger approximate loss of $390,084, which is 15.4% more than Stadium Capital.

On February 22, 2022, Sonthalia filed a Motion for Leave to file a Motion for Reconsideration of the order where she claimed the judge “fail[ed] . . . to consider material facts or dispositive legal arguments which were presented to the Court,” and failed to consider the purchase price of her View stock.

She requested to be appointed as lead plaintiff, and have Roche Freedman approved as lead counsel.

Judge Freeman’s order considered Sonthalia’s losses, but declined to factor these into its calculation of the parties’ losses because they occurred before the single corrective disclosure alleged in the complaint, according to court documents. The order also states she failed to point to a “manifest failure” to consider material facts.

In March 2021, 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, and 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 more than 24%, to close at $3.92 per share on August 17, 2021, on unusually heavy trading volume.”

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