Ormat (ORA) Accused of Implementing Ineffective Internal Controls Over Financial Reporting
According to the complaint, throughout the class period Ormat (ORA) repeatedly represented that its disclosure controls and procedures were effective and attested to the accuracy of financial reporting. It therefore came as a surprise to investors when Ormat disclosed on May 11, 2018, that the company would delay the filing of its Form 10-Q for the period ended March 31, 2018, citing an error in the company’s financial presentation of deferred income tax assets and liabilities that affects the company’s balance sheet in previous reporting periods. Then, on May 16, 2018, Ormat announced that it would restate its second, third, and fourth quarter 2017 financial statements and its full-year 2017 financial statements. Since news of Ormat’s financial reporting troubles were made public, Ormat’s stock fell over 7% to close at $52.35 per share on May 16, 2018.
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