The Rosen Law Firm, P.A. announces that it is investigating potential securities fraud claims against EnerNOC, Inc. (NASDAQ: ENOC) (“EnerNOC” or the “Company”) resulting from allegations that the Company may have issued materially inaccurate financial statements to the investing public between October 20, 2010 and February 11, 2011.
On November 11, 2010, the Company filed 10-Q statement of quarterly returns for the 3 rd Quarter of 2010. The report omitted that the Company’s largest customer, PJM Interconnection (“PJM”) would imminently change its rules to address what PJM describes as the Company’s (and other companies’) “double-counting”. Double-counting occurs when an energy Curtailment Service Provider, such as EnerNOC, counts both a customer’s willingness to curtail consumption during peak hours and its registration as a capacity resource. The Company later admitted that if PJM were to definitively prohibit double-counting, the Company’s revenues would be cut by about 10%.
On February 4, 2011, PJM issued a joint statement with its Independent Market Monitor reiterating its position on so-called “double-counting” energy savings. The statement also indicated that PJM would seek to pass rules that would specifically prohibit this double counting. The statement explained PJM’s position that double-counting of energy saving is inappropriate and subject to sanction. The statement did not name EnerNOC or any other alleged wrong-doers.
On February 5, 2011, EnerNOC’s Chief Operating Officer resigned.On Friday, February 11, 2011, analyst firm Deutsche Bank issued a cautionary client note warning of potential stock drops because of double-counting. On the same day, Deutsche Bank analyst Carter Shoop downgraded the price target for EnerNOC from $29 to $21 based on allegations of double-counting. The Rosen Law Firm is investigating a securities class action lawsuit on behalf of EnerNOC investors. If you purchased EnerNOC stock between November 11, 2010 and February 11, 2011, please visit the website at http://rosenlegal.com for more information. You may also contact Laurence Rosen, Esq., or Jonathan Horne, Esq. of The Rosen Law Firm toll free at 866-767-3653 or via e-mail at firstname.lastname@example.org or email@example.com. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation.