Robbins LLP is Investigating Allegations that Power Solutions International, Inc. (PSIX) Misled Investors Regarding its Business Prospects
Robbins LLP informs stockholders that a class action was filed on behalf of all investors who purchased or otherwise acquired Power Solutions International, Inc. (NASDAQ: PSIX) securities between May 8, 2025 and March 2, 2026. Power Solutions designs, manufactures, and sells engines and power systems.
The Allegations:
According to the complaint, during the class period, defendants failed to disclose to investors: (1) the Company overstated its ability to capture sales demand for its power systems solutions, particularly within the data center market; (2) the Company understated the impact of its enhancements to manufacturing capacity to meet demand within the data center market, including the expected costs and the nature of the related โinefficienciesโ; and (3) that, as a result of the foregoing, defendantsโ positive statements about the Companyโs business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Plaintiff alleges that on March 2, 2026, Power Solutions issued a press release announcing fourth quarter and full year 2025 financial results, revealing that gross margin declined 8% year-over-year due to โoperating inefficiencies related to [the Companyโs] accelerated production ramp-up for data center product lines.โ Further, the Company provided its outlook for 2026, including only โmoderate margin improvement from the products serving data center markets.โ The press release also revealed the Company was โexecuting specific actions to improve supply chain performance and manufacturing cost structuresโ but only now โbeginning to see measurable improvements, which [it] expect to build and support margin expansion over time.โ Following these disclosures, Power Solutions stock fell $24.84 or 28.97% to close at $60.91 on March 3, 2026.
What Now: You may be eligible to participate in the class action against Power Solutions International, Inc. Shareholders who wish to serve as lead plaintiff for the class should contact Robbins LLP. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.