|[July 18, 2014]
Hagens Berman Alerts Investors: 5 Days until Lead Plaintiff Deadline in PowerSecure Securities Fraud Extended Class Action
SAN FRANCISCO --(Business Wire)--
Hagens Berman Sobol Shapiro LLP, an investor-rights law firm, alerts
investors of the July 22, 2014 lead plaintiff deadline in a securities
fraud class action against PowerSecure International Inc. (NYSE: POWR)
("PowerSecure" or "the Company") following allegations that the company
violated federal securities laws when it issued false information to
investors about its revenue and business projections.
Investors with significant losses who purchased PowerSecure stock
between Aug. 8, 2013 and May 7, 2014 (the "Class Period") and are
willing to serve as the lead plaintiff may contact Hagens Berman Partner
Reed Kathrein, who is leading the firm's investigation, by calling
510-725-3000, emailing POWR@hbsslaw.com
or visiting http://hb-securities.com/investigations/PowerSecure-.
The extended class period complaint filed in the U.S. District Court for
the Eastern District of North Carolina on July 8, 2014, alleges that
while PowerSecure was projecting strong growth, and had allegedly raised
$42 million through a stock offering, the company hid significant
problems it was having with particular customers and operational
efficiencies and its labor force. The complaint also alleges that
PowerSecure insiders sold over $3.2 million in stock during this same
PowerSecure executive P and defendant Christopher Hutter projected the
company's "2014 gross margins to continue to be in the mid to high 20
percent." Not long after these projections, on May 7, 2014, the company
issued its first quarter 2014 financial results, reporting an adjusted
loss of $0.17 per share, compared to projections of $0.02 per share. In
response, PowerSecure stated that it "mis-timed actions to shift
resources to more profitable customers, as revenues from those new
customers were not adequate to sustain our margins."
Upon the release of this news, analysts claimed to be blindsided, and
PowerSecure shares dropped nearly 62 percent on May 7, 2014, declining
$11.60 per share to trade at $7.00 per share on May 8, 2014. PowerSecure
currently trades around $8.50 per share.
"When shareholders suffer a loss of nearly 65 percent due to the
misleading statements from the company, an 'oops' won't make things
right," said Mr. Kathrein. "We believe that what PowerSecure stated to
investors and what came to pass less than two months thereafter could
not be farther from one another, and are tenaciously investigating the
company on behalf of investors."
The deadline to file for lead plaintiff in the securities fraud class
action is July 22, 2014.
Persons with non-public information regarding PowerSecure should
consider their options to help in the investigation or take advantage of
the SEC (News - Alert) Whistleblower program. Under the new SEC Whistleblower program,
whistleblowers who provide original information may receive rewards
totaling up to 30 percent of any successful recovery made by the SEC.
For more information, call Reed Kathrein at 510-725-3000 or email POWR@hbsslaw.com.
Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law
firm with offices in nine cities. The firm represents investors,
whistleblowers, workers and consumers in complex litigation. More about
the firm and its successes can be found at www.hb-securities.com.
Read the firm's Securities Newsletter at http://www.hb-securities.com/newsletter.
The firm's blog is located at www.meaningfuldisclosure.com.
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