Kendall Law Group Plans Class Action On Behalf Of Ormat Technologies, Inc. Shareholders
Kendall Law Group announced today that it plans to join a lawsuit on behalf of shareholders of Ormat Technologies, Inc. (NYSE:ORA) alleging securities violations by Ormat and certain of its officers for violations of the federal securities laws in connection to their public statements affecting stock purchased between May 6, 2008 and February 24, 2010.
Any shareholder who purchased ORA stock during this time period may move the Court to serve as a plaintiff in this class action. If you wish to serve as lead plaintiff, you must move the Court for appointment by May 10, 2010. A lead plaintiff is a class member who acts on behalf of other class members in directing the litigation. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff. If you wish to learn more about your rights as a shareholder or have information concerning this action, you are encouraged to contact attorney Hamilton Lindley at 877-744-3728 or email@example.com.
The complaint alleges that defendants knew or recklessly disregarded that their public statements were false and misleading while they improperly continued capitalizing costs for individual projects, even after Ormat had decided to discontinue exploration and development of individual projects. Since those costs were not expensed in the period in which that determination was made, the financial statements during the relevant time period were overstated. The complaint also alleges that the Ormat’s financial statements failed to meet the requirements of the Generally Accepted Accounting Principles and that the Company lacked adequate internal and financial controls.
On February 24, 2010, Ormat disclosed that the Board of Directors and Audit Committee had concluded that their financial statements for 2008, as well as prior related earnings and news releases related to the 2008 financial statements, should no longer be relied upon. Ormat indicated that they would be making a restatement to show a change in their accounting treatment for certain exploration and development costs. Upon review of their accounting processes in response to comment letters from the Staff of the SEC, Ormat determined that the analogous accounting method used for capitalizing costs on an area-of-interest basis was inappropriate. Ormat stated that they would revise the consolidated financial statements for the three and nine-month periods ended September 30, 2009. On this news, stock prices declined nearly 13% over the next three trading days, closing at $28.93 on February 26, 2010.
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