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Glancy Binkow & Goldberg LLP announces that a class action lawsuit has been commenced in the United States District Court for the Northern District of Illinois on behalf of all purchasers of the securities of Lime Energy Co. (“Lime Energy” or the “Company”) (NASDAQ:LIME) between May 13, 2010 and July 17, 2012, inclusive (the “Class Period”).
The Complaint alleges violations of federal securities laws against Lime Energy and certain of the Company’s executive officers. Lime Energy is a provider of clean energy solutions. The Complaint alleges that throughout the Class Period the defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about Lime Energy’s business, operations and financial condition. Specifically, the Complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company was improperly recording revenue; (2) as a result, the Company’s revenue and financial results were overstated; (3) as such, the Company’s financial statements were not prepared in accordance with Generally Accepted Accounting Principles; (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 at all relevant times.
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 Securities and Exchange Commission on Form 10-K for the periods ended December 31, 2010 and December 31, 2011 and the quarterly report on Form 10-Q for the period ended March 31, 2012 may no longer be relied upon. According to the Company, the Audit Committee made that determination based on the results of a partial internal review conducted by the Company’s management and concluded Friday, July 13, 2012.
The Company further indicated that, 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, and that “the misreporting may potentially require restatement of all of the affected financial statements.”