Faruqi & Faruqi, LLP, a leading national securities firm headquartered in New York City, is investigating the Board of Directors and Officers of EnerNOC, Inc. (“EnerNOC” or the “Company”) (NASDAQ: ENOC). The investigation focuses on possible breaches of fiduciary duties by the Board of Directors and/or Officers of the Company in connection with allegations that the Company may have issued materially inaccurate statements to investors between October 20, 2010 and February 11, 2011.
On February 11, 2011, Reuters reported a 14% drop in the price of EnerNOC shares resulting from “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 highlighted in a Deutsche Bank client note, one week after regional grid operator PJM issued a statement condemning curtailment service providers like EnerNOC for a practice known as double counting. Double counting is when a customer either records power savings under more than one demand-cutting program or reduces its electricity demand by more than originally forecast and uses that excess to offset a shortfall by other customers. On the same day, Deutsche Bank analyst Carter Shoop downgraded the price target for the Company from $29 to $21 based on the allegations of double counting. On March 2, 2011, the stock closed at $18.77.
EnerNOC also said in a filing to the U.S. Securities and Exchange Commission on February 10, 2011, that its Chief Executive Office Darren Brady has agreed to resign.
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Faruqi & Faruqi, LLP is a national law firm which represents investors and individuals in class action litigation. The firm is focused on providing exemplary legal services in complex litigation in the areas of securities, shareholder, antitrust and consumer litigation, through all phases of litigation. The firm has an experienced trial team which has achieved significant victories on behalf of the firm’s clients.