A class action lawsuit has been filed in the United States District Court for the District of Massachusetts, on behalf of all purchasers of securities of EnerNOC, Inc. between November 1, 2007 and February 27, 2008, inclusive (the "Class Period") and/or pursuant or traceable to the Company's November 13, 2007 Secondary Public Offering (the "SPO" or the "Offering").
The Complaint charges EnerNOC and certain of its officers and directors with violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. EnerNOC is a leading developer and provider of clean and intelligent energy solutions to utilities and electric power grid operators, as well as commercial, institutional, and industrial customers.
The Complaint alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the Company's financial well-being, business relationships, and prospects. Specifically, defendants failed to disclose or indicate the following: (1) that expenses were rising at a dramatic rate, such that there would be a net loss despite rising revenues; (2) that the Company was facing rising operating costs and was unable to recognize revenue from new projects; (3) that the Company lacked adequate internal and financial controls; and (4) that, as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.
Prior to and throughout the Class Period, EnerNOC represented that they were experiencing continued growth and rising revenues. However, on February 27, 2008, the Company revealed they had experienced a net loss for the fourth quarter 2007 of $9 million and a net loss for the year of $23.6 million, despite the fact that the Company's revenue had tripled with the increasing of megawatts of capacity and adding more customers.
On this news, shares of the Company's stock fell $9.19 per share, or 36.04 percent, to close on February 27, 2008 at $16.31 per share, on unusually heavy trading volume. This closing price represented a cumulative loss of $26.69, or over 62 percent of the value of the Company's shares at the time of its SPO just months prior. Moreover, the following day, as investors continued to learn of the Company's shocking news, shares of the Company's stock fell $2.55, or 15.63%, to close on February 28, 2008 at $13.76. This closing price represented a cumulative loss of $29.24, or 68 percent of the value of the Company's shares at the time of the SPO just months prior.
If you are a current shareholder or purchased shares during the period of November 1, 2007 and February 27, 2008 and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.