Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Power Solutions International, Inc.
Oklahoma City, OK (August 25, 2016) – On August 22, 2016, a securities class action lawsuit was filed in the United States District Court for the Northern District of Illinois against Power Solutions International, Inc. (NASDAQ: PSIX). 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 May 8, 2015 through August 15, 2016. More specifically, this litigation was filed because throughout the Class Period the Company made false and/or misleading statements and/or failed to disclose that: (1) it inappropriately recognized revenue for certain transactions; (2) lacked adequate internal controls over financial reporting; and (3) as a result, the Company’s public statements were materially false and misleading at all relevant times.
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 announced that “[T]he additional time is needed for the Company to complete a review and finalize the financial statements for the second quarter. . . . The review is primarily focused on certain transactions involving revenue recognition.”
On this news, the Company’s shares dropped closing at $13.91 per share on August 16, 2016, on heavy trading volume.
Plaintiff seeks to recover damages on behalf of all Power Solutions International, 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 Friday, October 21, 2016 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: Robin.
Posted on Thu, August 25, 2016
by Robin Hester filed under