WASHINGTON--(BUSINESS WIRE)--Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether Ormat Technologies, Inc. (“Ormat” or the “Company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
A class action lawsuit was filed in the U.S. District Court for the District of Nevada by another law firm on behalf of purchasers of the common stock of Ormat Technologies, Inc. (NYSE: ORA) between August 8, 2017 and May 15, 2018, inclusive (the “Class Period”).
The complaint alleges that Ormat and certain of its officers and directors (“Defendants”) misrepresented and/or failed to disclose that: (1) there were errors in the income tax provision related to Ormat’s valuation allowance based on its ability to utilize foreign tax credits in the U.S. prior to their expiration; (2) Ormat netted certain deferred income tax assets and deferred income tax liabilities across different tax jurisdictions in violation of U.S. GAAP; (3) Ormat’s internal controls over financial reporting were ineffective during the Class Period, (4) Ormat would need to restate its second, third, and fourth quarter 2017 financial statements, as well as its full-year 2017 financial statements; and (5) as a result, Defendants statements about Ormat’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On May 11, 2018, Ormat announced a delay in filing its first quarter 2018 Form 10-Q because “management has identified an error in the Company’s financial statement presentation of deferred income tax assets and deferred income tax liabilities that affects the Company’s balance sheets in previous reporting periods.” Ormat continued:
Specifically, the Company netted certain deferred income tax assets and deferred income tax liabilities across different tax jurisdictions that are not permitted to be netted pursuant to United States generally accepted accounting principles. The Company is evaluating the impact of this error on its consolidated financial statements and the extent to which the Company’s annual and quarterly consolidated financial statements filed in previous periods require revision or amendment. Further, the Company is in the process of evaluating the control implications of this error as it relates to the material weakness disclosures previously made in the Annual Report on Form 10-K for the year ended December 31, 2017.
The price of Ormat shares fell from $56.19 on May 11, 2018 to $52.77 on May 14, 2018.
On May 16, 2018, Ormat announced “it will restate its second, third and fourth quarter 2017 financial statements and its full-year 2017 financial statements.” Ormat continued:
The decision to restate these financial statements is based on the Company’s conclusion that there were errors in the income tax provision primarily relating to the Company’s valuation allowance based on the Company’s ability to utilize foreign tax credits in the U.S. prior to their expiration. Additionally, the Company netted certain deferred income tax assets and deferred income tax liabilities across different tax jurisdictions that are not permitted to be netted pursuant to United States generally accepted accounting principles. The restatement is expected to impact the “income tax (provision) benefit” line item in the Company’s statements of operations, with associated impacts to net income and earnings per share and the “deferred income taxes” line items on its balance sheet. In connection with the restatement of the full-year 2017 financial statements, the Company will also make revisions to the same line items in certain quarterly financial statements for 2016 and its full-year 2016 and 2015 financial statements.
The price of Ormat shares fell from $53.02 on May 15, 2018 to $52.35 on May 16, 2018.
Cohen Milstein encourages all investors who purchased Ormat common stock between August 8, 2017 and May 15, 2018, or former employees with information concerning this matter to contact the firm.
If you are an Ormat shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein’s Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at firstname.lastname@example.org. If you wish to serve as lead plaintiff, you must move the Court no later than August 10, 2018 to request appointment. Any member of the proposed class may retain Cohen Milstein or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member.
Cohen Milstein has significant experience in prosecuting investor class actions and actions involving securities fraud, and is active in major litigation pending in federal and state courts throughout the nation. Cohen Milstein has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total billions of dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.
If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:
J. Toll, Esq.
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
Email: email@example.com; firstname.lastname@example.org