DENVER--(BUSINESS WIRE)--The Shuman Law Firm announces that it is investigating potential claims against certain officers and directors of Energy Recovery, Inc. (“Energy Recovery” or the “Company”) (Nasdaq: ERII). Energy Recovery is a San Leandro, CA-based company that designs, manufactures and distributes pressure energy devices for use in fluid flow markets, such as water and oil and gas.
The Firm’s investigation relates to whether certain current and/or former senior officers and directors breached their fiduciary duties to the Company. Specifically, in September 2014, the Company announced that it terminated the employment relationship with its Senior Vice President of Sales, Borja Sanchez-Blanco, for cause, after the Company became aware that Mr. Blanco had engaged in conduct which created a conflict of interest with the Company over the course of several years. Shortly thereafter, in January 2015, the Company announced that the Company’s Chief Executive Officer, Thomas S. Rooney, Jr. would be resigning. Following these two disclosures, Energy Recovery’s stock fell approximately 5% and 13%, respectively.
Multiple class action lawsuits were filed against the Company in the U.S. District Court for Northern District of California following these events. The lawsuits alleged that certain public statements made by Mr. Rooney were materially false and misleading relating to: (1) prospective clients and ongoing contract negotiations; (2) the Company’s core products and marketing strategy; and (3) requests for commercial proposals. The Company moved to dismiss these claims, but the judge denied in part and granted in part the motion and the case is now proceeding toward trial.
If you currently own Energy Recovery common stock and are interested in discussing your rights, or have information relating to this investigation, please contact Kip B. Shuman or Rusty E. Glenn toll free at (866) 569-4531 or email Mr. Shuman at kip@shumanlawfirm.com or Mr. Glenn at rusty@shumanlawfirm.com.
The Shuman Law Firm represents investors throughout the nation, concentrating its practice in stockholder litigation.