|[August 24, 2013]
Law Offices of Howard G. Smith Announces Investigation on Behalf of Investors of ECOtality, Inc.
BENSALEM, Pa. --(Business Wire)--
Law Offices of Howard G. Smith announces that it is investigating
potential claims on behalf of purchasers of the securities of ECOtality,
Inc. ("ECOtality" or the "Company") (NASDAQ:ECTY) concerning possible
violations of federal securities laws. The investigation focuses on
ECOtality's operations and financial prospects between April 16, 2013
and August 9, 2013.
ECOtality manufactures and sells charging systems for electric vehicles
(EV), including the Minit-Charger line of fast-charge systems for
off-road industrial applications. The investigation concerns allegations
that the Company misrepresented or failed to disclose that: (1) certain
of ECOtality's charging systems had been causing overheating, and even
melting connector plugs, when charging vehicles; (2) the Company was not
achieving enough commercial sales and installations to sustain
operations in the second half of 2013; (3) the ompany was not on track
to meet the scheduled release of a new Minit Charger product for
industrial customers in the second half of 2013; (4) the Company was
unable to obtain the financing to meet its short-term and long-term
capital needs and would be unable to meet its obligations to the U.S.
Department of Energy's EV Project; and (5) the Company was liable to the
U.S. Department of Labor for $855,000 for the payment of back wages and
On August 12, 2013 ECOtality issued a press release announcing that it
had hired a "restructuring" adviser to evaluate options, including new
financing, a possible sale of the Company or bankruptcy filing.
Following this news, the price of ECOtality shares dropped nearly 80%,
to $0.30 per share, from the previous day's close of $1.46, on volume of
more than 15 million shares traded.
If you purchased ECOtality securities, if you have information or would
like to learn more about these claims, or if you purchased ECOtality
shares prior to April 16, 2013 and have any questions concerning this
announcement or your rights or interests with respect to these matters,
please contact Howard G. Smith, Esquire, of Law Offices of Howard G.
Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by
telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to firstname.lastname@example.org,
or visit our website at www.howardsmithlaw.com.
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