Robbins LLP: Energy Recovery, Inc. (ERII) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that an investor of Energy Recovery, Inc. (NASDAQGS: ERII) has filed a federal securities fraud class action complaint in the U.S. District Court for the Northern District of California. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between March 14, 2012 and January 13, 2015. Energy Recovery designs, develops, and manufactures energy recovery devices that transform untapped energy into reusable energy from industrial fluid flows and pressure cycles.
Energy Recovery Lacks Efficient Internal Controls
According to the complaint, shares of Energy Recovery fell multiple times, beginning with an initial decline of $0.15 per share, or over 3% to close at $4.03 per share on September 11, 2014, following the company’s announcement that it had terminated its Senior Vice President of Sales because he had engaged in conduct that created a conflict of interest and breached a duty of trust over the course of several years. Shortly thereafter, on January 13, 2015, Energy Recovery issued a press release announcing the abrupt resignation of the company’s Chief Executive Officer. On this news, Energy Recovery shares fell $0.54 per share, or over 12%, to close at $3.90 per share on January 14, 2015. The complaint further alleges that Energy Recovery issued materially false and misleading statements by failing to disclose significant internal control deficiencies that in turn caused the company to file false and misleading reports with the U.S. Securities and Exchange Commission.
Energy Recovery 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.