An investigation on behalf of investors in Energy Recovery, Inc. (NASDAQ:ERII) shares over potential wrongdoing at Energy Recovery was announced and NASDAQ:ERII stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 09/06/2016 -- Certain directors of Energy Recovery, Inc are under investigation over potential wrongdoing. The investigation was announced on behalf of investors in NASDAQ:ERII shares concerning possible breaches of fiduciary duties by certain Energy Recovery directors.
Investors who purchased shares of Energy Recovery, Inc. (NASDAQ:ERII) in early 2014 or earlier and continue to hold any NASDAQ:ERII shares have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call 858-779-1554.
The investigation by a law firm concerns whether certain Energy Recovery directors breached their fiduciary duties and caused damage to the company and its shareholders.
On September 10, 2014, Energy Recovery, Inc. announced that effective immediately, it has terminated the employment relationship with its Senior Vice President of Sales, Borja Sanchez-Blanco, for cause. Energy Recovery, Inc said that it recently became aware that Mr. Blanco had breached a duty of trust and engaged in conduct which created a conflict of interest with the Company over the course of several years, not in keeping with the Company's standards for ethics and integrity.
On January 13, 2015, Energy Recovery, Inc. announced that Mr. Thomas S. Rooney, Jr. will be resigning as Chief Executive Officer to facilitate a transition during which the Company will identify and appoint a successor to further lead the Company's efforts in the oil and gas industry while continuing to strengthen its market leading position in desalination.
On January 20, 2015, a lawsuit was filed against Energy Recovery, Inc over alleged securities laws violations. The plaintiff alleged that Energy Recovery, Inc. issued materially false and misleading statements to investors by failing to disclose significant internal control deficiencies that rendered the Company's periodic reports filed with the SEC false and misleading. In june 2015 an amended complaint was filed and in July 2015 the defendants filed their motion to dismiss the lawsuit.
In January 2016, Energy Recovery, Inc was sued by its former Chief Sales Officer who alleges that certain Energy Recovery executives had compelled him to required false information to board members and the public. The Chief Sales Officer also alleged that a number of the Company's public statements regarding its business were false.
On May 24, 2016, a report was published characterizing Energy Recovery's market value as "excessive" further stating that "the Company has a rich history of over-promising and under-delivering." The Report also detailed a January 2016 lawsuit filed by the Company's former Chief Sales Officer alleging that certain Energy Recovery executives had compelled him to provide "false information to Board members and the public" and that Energy Recovery had made a number of misrepresentations with respect to the sales pipeline for its products, the viability of its Vorteq product, and companies for which it was a qualified vendor.
On August 16, 2016, the former Chief Sales Officer notified the court of a tentative settlement of the case from January 2016.
Those who purchased shares of Energy Recovery, Inc. have certain options and should contact the Shareholders Foundation.
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