Pomerantz LLP announces that a class action lawsuit has been filed against Power Solutions International, Inc. ("PSI" or the "Company") and certain of its officers. The class action, filed in United States District Court, Northern District of Illinois, and docketed under 16-cv-08253, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired PSI securities between May 8, 2015 and August 15, 2016 both dates inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under 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 Company sells its products and services primarily in North America, as well as in the Pacific Rim andEurope.
The complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company inappropriately recognized revenue for certain transactions; (ii) the Company lacked adequate internal controls over financial reporting; and (iii) as a result of the foregoing, PSI'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 Securities and Exchange Commission ("SEC"), announcing that the Company needed additional time to file its quarterly report for the quarter ended June 30, 2016 with the SEC.
On this news, PSI's share price fell $1.52 per share, or 9.85%, to close at $13.91 on August 16, 2016.