LOS ANGELES--(BUSINESS WIRE)--Glancy Binkow & Goldberg LLP announces that a class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of a class (the “Class”) comprising all purchasers of the common stock of ECOtality, Inc. (“ECOtality” or the “Company”) (NASDAQ:ECTY) between April 16, 2013 and August 9, 2013, inclusive (the “Class Period”).
A COPY OF THE COMPLAINT IS AVAILABLE FROM THE COURT OR FROM GLANCY BINKOW & GOLDBERG LLP. PLEASE CONTACT US TOLL-FREE AT (888) 773-9224, OR AT (212) 682-5340, OR BY EMAIL TO SHAREHOLDERS@GLANCYLAW.COM TO DISCUSS THIS MATTER. IF YOU INQUIRE BY EMAIL PLEASE INCLUDE YOUR MAILING ADDRESS, TELEPHONE NUMBER AND NUMBER OF SHARES PURCHASED.
ECOtality manufactures and sells charging systems for electric vehicles (EV), including the Minit-Charger line of fast-charge systems for off-road industrial applications. The Complaint alleges that during the Class Period defendants issued false and misleading statements or failed to disclose that: (1) certain of ECOtality’s charging systems had been had been causing overheating, and even melting connector plugs, when charging vehicles; (2) the Company was not achieving enough commercial sales and installations to sustain operations in the second half of 2013; (3) the Company was not on track to meet the scheduled release of a new Minit Charger product for industrial customers in the second half of 2013; (4) the Company was unable to obtain the financing to meet its short-term and long-term capital needs and would be unable to meet its obligations to the U.S. Department of Energy’s EV Project; and (5) 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 ECOtality issued a press release announcing that it had hired a "restructuring" adviser to evaluate options, including new financing, a possible sale of the Company or bankruptcy filing. Following this news, the price of ECOtality shares dropped nearly 80%, to $0.30 per share, from the previous day’s close of $1.46, on volume of more than 15 million shares traded.
If you are a member of the Class described above you may move the Court no later than October 14, 2013 to serve as lead plaintiff; however, you must meet certain legal requirements. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class.
If you wish to learn more about this action or if you purchased ECOtality shares prior to the Class Period and have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, Toll Free at (888) 773-9224, or contact Gregory Linkh, Esquire, of Glancy Binkow & Goldberg LLP at 122 E. 42nd Street, Suite 2920, New York, New York 10168, at (212) 682-5340, by e-mail to firstname.lastname@example.org, or visit our website at http://www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.