NEW YORK--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/ecotality/) today announced that a class action has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of ECOtality, Inc. (“ECOtality”) (NASDAQ:ECTY) common stock during the period between April 16, 2013 and August 9, 2013 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/ecotality/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges ECOtality and certain of its officers and directors with violations of the Securities Exchange Act of 1934. ECOtality is an electric transportation and storage technologies company that sells electric vehicle (“EV”) supply equipment (or “EVSE”) through its customer-facing brand of smart EV chargers, Blink.
The complaint alleges that during the Class Period, defendants issued false and misleading statements regarding the Company’s business and future prospects. Specifically, the complaint alleges that defendants concealed the following material adverse facts from the investing public during the Class Period: (a) due to design and manufacturing defects, some of ECOtality’s charging systems had been causing overheating and even the melting of connector plugs when charging vehicles; (b) despite efforts undertaken to transition the Company’s business model from subsidizing installations of EVSEs under the Department of Energy’s (“DOE”) EV Project to regular commercial sales and installations, ECOtality was not achieving enough commercial sales and installations to sustain operations in the second half of 2013; (c) due to “unacceptable performance shortfalls during prototype verification testing,” ECOtality was not on track to meet the scheduled release of a new Minit Charger product for industrial customers in the second half of 2013; (d) due to would-be potential investors’ unwillingness to provide additionally needed financing, ECOtality was unable to obtain the requisite financing to meet its short-term and long-term capital needs and would be unable to meet its obligations to the DOE’s EV Project and the DOE would suspend all payments to the Company; and (e) due to non-compliance with the nation’s labor laws, the Company was liable to the U.S. Department of Labor for $855,000 for the payment of back wages and damages.
On August 12, 2013, before the opening of trading, ECOtality announced that the Company had hired a “restructuring” adviser to evaluate options, including new financing, a possible sale of the Company or bankruptcy filing. The Company’s Current Report filed with the SEC on Form 8-K that day emphasized, in pertinent part, that a bankruptcy filing could be made “in the very near future” following, among other things, disappointing sales and suspension of payments from the federal government. On this news, the price of ECOtality common stock, which had traded as high as $2.40 per share in intraday trading during the Class Period, plummeted more than 87% from that level to close at $0.30 per share when trading resumed on August 12, 2013.
Plaintiff seeks to recover damages on behalf of all purchasers of ECOtality common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in nine offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $2 trillion. The firm has obtained many of the largest recoveries and has been ranked number one in the number of shareholder class action recoveries in MSCI’s Top SCAS 50 every year since 2003. Please visit http://www.rgrdlaw.com for more information.