Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Advanced Emissions Solutions, Inc.
Oklahoma City, OK (May 5, 2014) -- On 5/1/2014, a securities class action lawsuit was filed in the United States District Court for the District of Colorado against Advanced Emissions Solutions, Inc. (NASDAQ: ADES). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is 3/14/2013 through 3/12/2014. More specifically, this litigation was filed because throughout the Class Period, defendants made false and/or misleading statements, and failed to disclose material adverse facts about Advanced Emissions Solutions, Inc.'s ("Advanced Emissions" or the "Company") business, operations, prospects and performance. Specifically, during the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company was employing improper accounting practices, particularly with respect to its method for recognizing revenue for its Emission Control business segment contracts; (ii) the Company was experiencing increased operating losses, primarily driven by a reduction of revenues and margins for its Emission Control segment with a corresponding increase in backlog; (iii) the improper accounting practices would require the Company to restate its reported financial statements, and (iv) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On March 13, 2014, the Company announced in a Securities and Exchange Commission Form 8-K filing that, "the Company is currently reviewing its accounting practices, particularly its methods of recognizing revenue for its Emission Control business segment contracts. The Company expects the result of this review will likely result in increased operating losses, primarily driven by a reduction of revenues and margins for its emission control segment with a corresponding increase in backlog for the same period."
Plaintiff seeks to recover damages on behalf of all Advanced Emissions Solutions, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Wednesday, July 30, 2014 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to firstname.lastname@example.org, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Lynn.
Posted on Mon, May 5, 2014
by K. Lynn Nunn filed under