PowerSecure International, Inc.
A class action lawsuit has been filed in the United States District Court for the Eastern District of North Carolina, on behalf of all persons who purchased shares of PowerSecure International, Inc. ("PowerSecure") (POWR), 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.
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.
If you are a current shareholder and/or purchased stock between March 14, 2012 and March 26, 2013 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.