Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether Lime Energy Company (“Lime Energy” or the “Company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
Class action lawsuits were filed in the U.S. District Court for the Northern District of Illinois by other law firms on behalf of purchasers of the common stock of Lime Energy Company (NASDAQ: LIME) between May 13, 2010 and July 17, 2012, inclusive (the “Class Period”).
The complaints allege that Defendants misrepresented and/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 GAAP; (4) the Company lacked adequate internal and financial controls; and (5) as a result of the foregoing, the Company's financial statements were materially false and misleading.
On July 17, 2012, Lime Energy announced that its Audit Committee had determined that the Company’s consolidated financial statements for the years 2010, 2011 and the quarter ended March 31, 2012 should no longer be relied upon, based on the results of “ a partial internal review conducted by the Company’s management.” According to the press release:Based on the results of that partial internal review, the Company’s management and the Audit Committee believe that some portion of the Company’s revenue was improperly recorded. In some cases, it appears that non-existent revenue may have been recorded. In other cases, it appears that revenue may have been recorded earlier than it should have been. Lime Energy further reported that it “ cannot make a reliable estimate of the magnitude of the misreported revenue or the effects on the affected financial statements at this time.” The price of Lime Energy shares fell from $2.03 to $1.12 on July 17. Cohen Milstein encourages all investors who purchased LIME common stock between May 13, 2010 and July 17, 2012 or former employees with information concerning this matter to contact the firm.
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