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TMCNet:  Hagens Berman Alerts Investors: 5 Days until Lead Plaintiff Deadline in PowerSecure Securities Fraud Extended Class Action

[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 period.

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.

About Hagens Berman

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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