NEW YORK, May 23, 2014 /PRNewswire/ -- Wolf Popper LLP has filed a class action lawsuit against PowerSecure International, Inc. common stock ("PowerSecure") (NYSE: POWR), and two of its senior officers, in the United States District Court for the Eastern District of North Carolina, on behalf of all persons who purchased shares of PowerSecure common stock on the open market during the period March 10, 2014 through May 7, 2014, and were damaged thereby. This action alleges claims for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
If you are a member of the Class, you may file a motion no later than July 22, 2014 to be appointed the lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Investors who purchased PowerSecure common stock during the Class Period and suffered losses are urged to contact Wolf Popper to discuss their rights.
The Complaint charges that Defendants made materially false and/or misleading statements by misrepresenting and failing to disclose certain adverse facts, including that PowerSecure lacked the experience and internal controls necessary to expand its distributed generation business into larger contracts.
On May 7, 2014, PowerSecure reported its first quarter 2014 financial results, including an adjusted loss of ($0.17) per share compared to analysts' earnings estimate of $0.02 per share. PowerSecure disclosed 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," resulting in gross margins to decrease to 20.9% in the first quarter from 30.6% a year earlier. Thus, PowerSecure admitted contrary to representations as recently as March 10, 2014 that PowerSecure's gross margins would remain "in the mid to upper 20%-range."
On this news, PowerSecure shares declined $11.60 per share or 62%, to close at $7.00 per share on May 8, 2014.
Wolf Popper has successfully recovered billions of dollars for defrauded investors. The firm's reputation and expertise have been repeatedly recognized by the courts, which have appointed the firm to major positions in securities litigation. See www.wolfpopper.com
For more information, please contact:
Robert C. Finkel, Esq.
Tel.: 212.759.4600 or 877.370.7703 (toll free)
Fax: 212.486.2093 or 877.370.7704 (toll free)
Email: irrep@wolfpopper.com
website: www.wolfpopper.com
SOURCE Wolf Popper LLP
