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SunPower (NASDAQ:SPWR) -18.2% in Friday’s trading to its lowest in nearly two months after disclosing Ernst & Young resigned as its auditor in the wake of allegations of misconduct by senior executives.
Also in its 8-K filing, SunPower (SPWR) said it received a document subpoena from the Securities and Exchange Commission in February related to certain accounting matters such as revenue recognition practices related to its 2023 results and missing statements for the current fiscal year.
Ernst & Young said it is resigning as SunPower’s (SPWR) independent accountant because it was “unwilling to be associated with the financial statements prepared by management,” according to the filing.
SunPower (SPWR) said it has authorized an internal review that is being “conducted by an independent outside law firm, with the assistance of independent forensic accountant advisors.”
The company said in April it needed to restate nearly two years of financial results; it has also replaced its CEO and COO and defaulted on a credit agreement in late 2023 after an earlier earnings revision.