A lawsuit was filed on behalf of investors in ECOtality Inc (NASDAQ:ECTY) shares over alleged securities laws violations. Deadline: October 14, 2013. NASDAQ:ECTY investors should contact the Shareholders Foundation at firstname.lastname@example.org
San Diego, CA -- (SBWIRE) -- 08/27/2013 -- An investor, who purchased shares of ECOtality Inc (NASDAQ:ECTY), filed a lawsuit in the U.S. District Court for the Northern District of California over alleged violations of Federal Securities Laws by ECOtality Inc in connection with certain allegedly false and misleading statements made between April 16, 2013 and August 9, 2013.
Investors who purchased a significant amount of shares of ECOtality Inc (NASDAQ:ECTY) between April 16, 2013 and August 9, 2013 , and / or those who purchased NASDAQ:ECTY shares prior to April 2013 and currently hold any of those shares, have certain options and for certain investors are short and strict deadlines running. Deadline: October 14, 2013. NASDAQ:ECTY investors should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on behalf of purchasers ECOtality Inc (NASDAQ:ECTY) common stock during the period, that ECOtality Inc and certain of its officers and directors violated the Securities Exchange Act of 1934.
More specifically, the plaintiff alleges that defendants allegedly concealed the following material adverse facts from the investing public during between April 16, 2013 and August 9, 2013, that due to design and manufacturing defects, some of ECOtality’s charging systems had been causing overheating and even the melting of connector plugs when charging vehicles, that despite efforts undertaken to transition ECOtality’s business model from subsidizing installations of EVSEs under the Department of Energy’s (“DOE”) EV Project to regular commercial sales and installations, ECOtality was not achieving enough commercial sales and installations to sustain operations in the second half of 2013, that due to “unacceptable performance shortfalls during prototype verification testing,” ECOtality was not on track to meet the scheduled release of a new Minit Charger product for industrial customers in the second half of 2013, that due to would-be potential investors’ unwillingness to provide additionally needed financing, ECOtality was unable to obtain the requisite financing to meet its short-term and long-term capital needs and would be unable to meet its obligations to the DOE’s EV Project and the DOE would suspend all payments to ECOtality, and that due to non-compliance with the nation’s labor laws, ECOtality was liable to the U.S. Department of Labor for $855,000 for the payment of back wages and damages.
Shares of ECOtality Inc (NASDAQ:ECTY) declined from $6.19 per share in June 2010 to as low as $0.32 per share in November 2012.
On April 15, 2013, ECOtality Inc reported its fourth quarter and fiscal 2012 results. ECOtality’s annual Total Revenue rose from $8.60 million in 2009 to $54.73 million in 2012 and that its respective Net Loss declined from $29.51 million to $9.58 million.
Shares of ECOtality Inc (NASDAQ:ECTY) grew from almost $0.30 per share in November 2012 to $1.97 per share on June 7, 2013.
Then on August 12, 2013, ECOtality Inc disclosed that the Company’s Board of has retained a restructuring advisor. Among other things, ECOtality Inc also said tha although the Company is currently exploring options for a restructuring or sale of the entire business and/or assets of the Company, it may need to file a petition commencing a case under the United States Bankruptcy Code as part of any such process or otherwise in the very near future.
NASDAQ:ECTY closed on August 26, 2013, at $0.163.
Those who purchased shares of ECOtality Inc (NASDAQ:ECTY), have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego
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