SAN DIEGO & WOOD DALE, Ill.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a shareholder derivative complaint was filed on behalf of Power Solutions International, Inc. (NasdaqCM: PSIX) in the Circuit Court of Cook County, Illinois. The complaint is brought against Power Solutions' board of directors and the company's former auditor, RSM US LLP ("RSM"), for alleged breaches of fiduciary duties and other violations of the law beginning in approximately 2014 through the present. Power Solutions designs, manufactures, distributes, and supports power systems and custom engineered integrated electrical power generation systems for industrial original equipment manufacturers of off-highway industrial equipment and on-road medium trucks and buses.
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Power Solutions Accused of Improperly Recognizing Revenue
According to the complaint, on August 15, 2016, Power Solutions filed a Form 8-K with the U.S. Securities and Exchange Commission disclosing that there was an ongoing internal review of allegations made by a former employee relating to certain transactions involving revenue recognition. On January 5, 2017, Power Solutions stated in its Form 8-K that, based on the results of the review, its financial statements for the second through fourth quarters of 2015, fiscal year 2015, and the first quarter of 2016 should no longer be relied upon and would need to be restated. In regard to its 2015 financial results, Power Solutions admitted that the company improperly recognized at least $18 million in revenue and that it had a material weakness in its internal controls over financial reporting. On February 3, 2017, Power Solutions announced that its financial statements for fiscal year 2014 and the first quarter of 2015 should no longer be relied upon. Power Solutions also announced the resignation of its Chief Financial Officer, Michael P. Lewis, and RSM, which stated that it could no longer rely on management's representations. On April 18, 2017, Power Solutions revealed in a Form 8-K that NASDAQ had delisted its stock due to the company's failure to file accurate and timely financial results.
Power Solutions Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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