Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of the securities of EnorNOC Inc.(“ENOC” or the “Company”) (NASDAQ:ENOC), concerning whether the company has violated federal securities laws.
On February 11
, 2011, Reuters reported shares of EnerNOC slid 14 percent to an 18 month low on concerns that the demand response company may have fattened revenues on the books and covered up some customers’ failure to meet agreed-upon power-use reduction targets. The concerns were further highlighted in a Deutsche Bank client note, a week after regional grid operator PJM issued a statement condemning curtailment service providers (“CSP”) like EnerNOC for a practice known as double counting. Double counting is when a customer either records power saving under more than one demand-cutting program or reduces its electricity demand by more than originally forecast and uses the excess to offset a shortfall by other customers. The result is the CSP is paid twice for a single load reduction.
Deutsche Bank analyst Carter Shoop wrote,
“If EnerNOC is involved in this ‘market manipulation’ we believe sales and/or margins could be impacted (there are several small customers that are not adequately shedding load today that EnerNOC would have to discontinue its relationship with or more aggressively incentive to shed load).”
Shoop added that if EneNOC is involved in double counting this could hurt earnings.
On this news, shares of ENOC fell to $20.49 from its opening price of $23.85. Since then, ENOC’s CFO Darren Brady has agreed to resign and shares of the Company have continued to decline and are currently trading around $18.90.
If you are aware of any facts relating to this investigation, or purchased shares of ENOC, you can assist this investigation by contacting either Peretz Bronstein or Eitan Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email
. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate work, private securities offerings, and securities arbitration.