Power Solutions International, Inc. (Nasdaq: PSIX)
A class action has been commenced in the United States District Court for the Northern District of Illinois on behalf of purchasers of Power Solutions International, Inc. (Nasdaq: PSIX) common stock between May 8, 2015 and August 15, 2016 (the “Class Period”).
The complaint charges Power Solutions International (“PSI”) and certain of its officers with violations of the Securities Exchange Act of 1934. PSI designs, manufactures, distributes and supports power systems and custom engineered integrated electrical power generation systems for industrial original equipment manufacturers of off-highway industrial equipment and on-road medium trucks and buses.
The complaint alleges that throughout the Class Period, defendants made false and misleading statements and/or failed to disclose material adverse facts about the Company's business, operations and prospects, including that the Company lacked adequate internal controls over financial reporting and, as a result, had inappropriately recognized revenue for certain transactions during the Class Period. As a result of defendants’ false statements and/or omissions, PSI securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high of $58.42 per share.
Then on August 15, 2016, after the market closed, the Company issued a press release and filed a Current Report on Form 8-K with the SEC announcing that the Company needed additional time to file its quarterly report for the quarter ended June 30, 2016 with the SEC. The Company stated in part that “additional time is needed for the Company to complete a review and finalize the financial statements for the second quarter . . . in light of an ongoing review of allegations made by a former employee,” and that the Company had “initiated an independent review to assess whether there is any merit to” the allegations. The review was “primarily focused on certain transactions involving revenue recognition.” On this news, the price of PSI shares fell $1.52 per share, or nearly 10%, to close at $13.91 per share on August 16, 2016.
If you are a current shareholder and purchased stock between May 8, 2015 and August 15, 2016, 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.
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