LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Energy Recovery, Inc. ("Energy Recovery” or the "Company") (NASDAQ: ERII) securities between August 2, 2017 and June 29, 2020, inclusive (the “Class Period”). Energy Recovery investors have until September 21, 2020 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On June 29, 2020, Energy Recovery announced the termination of its 15-year contract with Schlumberger Technology Corp. (“Schlumberger”) for the exclusive use of Energy Recovery’s VorTeq hydraulic pumping system, citing “different strategic perspectives as to the path to VorTeq commercialization.” Without the agreement in place, the Company will be wholly responsible for the commercialization of the VorTeq technology.
On this news, the Company’s share price fell $1.31 or over 14%, to close at $7.60 per share on June 30, 2020, thereby injuring investors.
The complaint alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company and Schlumberger had different strategic perspectives regarding commercialization of VorTeq; (2) that these differences created substantial risk of early termination of the Company’s exclusive licensing agreement with Schlumberger; (3) accordingly, the revenue guidance and expectations of future license revenue was false and lacked reasonable basis; and (4) as a result, Defendants’ public statements were materially false and misleading at all relevant times or lacked a reasonable basis and omitted material facts.
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If you purchased Energy Recovery securities during the Class Period, you may move the Court no later than September 21, 2020 to ask the Court to appoint you as lead plaintiff. 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 purchased Energy Recovery securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to firstname.lastname@example.org, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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