LOS ANGELES, July 21, 2012 /PRNewswire/ -- The Lin Law Firm, A Professional Law Corporation, has filed a class action lawsuit against Lime Energy Co. ("Lime Energy" or the "Company") (Nasdaq: LIME) and certain of its officers for alleged violations of the federal securities laws in the United States District Court, Northern District of Illinois, under case no. 12 C 5704. The case is brought on behalf of a class consisting of all persons or entities who purchased Lime Energy securities between May 13, 2010 and July 17, 2012, inclusive (the "Class Period"). If you are a shareholder who purchased Lime Energy securities during the Class Period, you have until September 18, 2012 to ask the Court to appoint you as Lead Plaintiff for the class.
On July 17, 2012, the Company disclosed that the Audit Committee of the Board of Directors of Lime Energy had determined that the Company's consolidated financial statements filed with the SEC on Form 10-K for the periods ended December 31, 2010 and December 31, 2011, and quarterly report on Form 10-Q for the period ended March 31, 2012, may no longer be relied upon. Specifically, the Company stated that, "[i]n some cases, it appears that non-existent revenue may have been recorded" and that "[i]n other cases, it appears that revenue may have been recorded earlier than it should have been."
On this news, shares of the Company declined approximately 45%, to close on July 17, 2012, at $1.12 per share, on unusually heavy volume.
The Complaint filed by The Lin Law Firm alleges that during the Class Period, Defendants made false and misleading statements or failed to disclose that: (1) the Company was improperly recording revenue; (2) the Company's revenue and financial results were overstated; (3) the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (4) the Company lacked adequate internal and financial controls; and (5) the Company's financial statements were materially false and misleading at all relevant times.