Broadwind Energy, Inc.
Robbins Umeda LLP Announces an Investigation of Broadwind Energy, Inc.
Robbins Umeda LLP, a shareholder rights litigation firm, has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Broadwind Energy, Inc. (NASDAQ:BWEN) (“Broadwind”). Broadwind provides products and services to the wind energy industry primarily in the United States. The company provides its products and services to various wind energy customers that include wind turbine manufacturers, wind farm developers, and wind farm operators, as well as oil and gas, mining, and other industries. Broadwind is headquartered in Naperville, Illinois.
Robbins Umeda LLP’s investigation concerns whether the officers and directors of Broadwind issued materially inaccurate financial statements to the investing public between March 17, 2009 and August 9, 2010. Specifically, the investigation concerns whether Broadwind improperly delayed the recognition of the impairment of non-tangible assets and goodwill related to its R.B.A., Inc. business unit and acquisitions made over the past several fiscal years. In its August 9, 2010, second quarter earnings release, Broadwind announced “[t]he net loss for the second quarter of 2010 was $14.20 million or $0.13 per share.” In its 10Q filed the same day, the company stated that it had seen “a reduction in our service technicians deployed due to a decline in wind installation and maintenance projects, competitive pricing associated with fewer service contract opportunities and the current preference of customers to insource their maintenance activities.” After the disclosure of these facts, the company’s value fell $37.4 million, over 12%.