NEW YORK--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/powersecure/) today announced that a class action has been commenced in the United States District Court for the Eastern District of North Carolina on behalf of purchasers of PowerSecure International, Inc. (“PowerSecure” or the “Company”) (NYSE:POWR) common stock during the period between August 8, 2013 and May 7, 2014, inclusive (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from May 23, 2014. 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 firstname.lastname@example.org. 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/powersecure/. 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 PowerSecure and certain of its officers and directors with violations of the Securities Exchange Act of 1934. PowerSecure is a Wake Forest, North Carolina-based provider of products and services to U.S.-based electric utilities. The Company develops and markets energy technology products, services and data management systems to industrial and commercial users and suppliers of natural gas and electricity.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s financial performance and future prospects and failed to disclose adverse facts, including that: (a) the Company was encountering significant operational issues and inefficiencies arising from under-utilization of its labor force, which was significantly increasing operational costs and decreasing operating margins and profits; (b) the Company was not receiving as much work as anticipated from a new customer who, while in the process of finalizing a new two-year contract, significantly cut back work under that contract; and (c) as a result of its efforts to increase the mix of larger projects in one of its operating segments, the Company had been experiencing much longer sales cycles and failing to bring in the faster-turn, smaller projects that had previously provided a steady revenue flow for that core segment, thereby negatively impacting the Company’s backlog.
On May 7, 2014, after the close of trading, PowerSecure issued a press release disclosing its first quarter 2014 financial results and reducing fiscal 2014 guidance. For the three months ended March 31, 2014, the Company reported a net loss of $4.3 million, despite having led the investment community to expect profits of $59.33 million in revenues. Gross margins had narrowed to 20.9% from 30.6% as cost of sales jumped 34% to $41.8 million. Operating expenses had also climbed 39% to $17.7 million.
On this news, the price of PowerSecure stock took a dramatic downturn, falling $11.60 per share – more than 62% – on extremely high trading volume on May 8th.
Plaintiff seeks to recover damages on behalf of all purchasers of PowerSecure 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, with more than 200 lawyers in 10 offices, represents U.S. and international institutional investors in contingency-based securities and corporate litigation. The firm has obtained many of the largest securities class action recoveries in history, including the largest jury verdict ever in a securities class action. Please visit http://www.rgrdlaw.com for more information.