Power Solutions International, Inc.
Robbins Arroyo LLP: Power Solutions International, Inc. (PSIX) Accused of Issuing Misleading Financial Information
Robbins Arroyo LLP announces that a class action complaint was filed against Power Solutions International, Inc. (NASDAQCM: PSIX) in the U.S. District Court for the Northern District of Illinois. The complaint is brought on behalf of all purchasers of Power Solutions securities between January 15, 2014 and August 15, 2016, for alleged violations of the Securities Exchange Act of 1934 by Power Solutions’ officers and directors. Power Solutions designs, manufactures, distributes, and supports power systems and custom engineered integrated electrical power generation systems for industrial original equipment manufacturers (OEMs) of off-highway industrial equipment and on-road medium trucks and buses.
Power Solutions Accused of Issuing Misleading Financial Information
According to the complaint, throughout the class period, Power Solutions submitted several filings with the U.S. Securities and Exchange Commission (“SEC”), certifying that the financial information was accurate and disclosed any material changes to the company’s internal control over financial reporting. However, the complaint alleges that Power Solutions officials failed to disclose that: (1) the company improperly recognized revenue for certain transactions; (2) that, as a result, the company’s financial statements were misstated and not presented in accordance with Generally Accepted Accounting Principles; (3) that the company lacked adequate internal controls over financial reporting; and (4) that, as a result, the company’s statements about its business, operations, and prospects were misleading.
On August 4, 2016, Power Solutions announced the postponement of its second quarter 2016 earnings release and conference call to “allow for more time to finalize its quarterly financial results.” Then, on August 15, 2016, Power Solutions issued a press release announcing the company needed additional time to file its quarterly report with the SEC for the quarter ended June 30, 2016. The company stated that it had not completed its financial statements due to an ongoing review of allegations made by a former employee, and that the company’s board had initiated an independent review primarily focused on certain transactions involving revenue recognition. On this news, Power Solutions stock fell $1.52 per share, or 9.85%, to close at $13.91 per share on August 16, 2016.
Power Solutions Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.