On August 15, 2012, Wolf Haldenstein Adler Freeman & Herz LLP filed a class action lawsuit in the United States District Court, Northern District of Illinois, on behalf of all persons who purchased Lime Energy Co., Inc. common stock (“Lime Energy” or the “Company”) [NASDAQ:LIME] between May 14, 2010 and July 17, 2012, inclusive (the “Class Period”), against the Company and certain of the Company’s officers and directors, alleging securities fraud pursuant to Sections 10(b) and 20(a) of the Exchange Act [15 U.S.C. §§ 78j(b) and 78t(a)] and Rule 10b-5 promulgated thereunder by the SEC [17 C.F.R. § 240.10b-5] (the “Class”).
On August 21, 2012, Lime Energy issued a press release announcing that the filing of its second quarter 10-Q would be delayed due to the Company’s internal investigation. Lime Energy further announced that it had received a letter from The NASDAQ OMX Group (“NASDAQ”) that the company is not in compliance with the filing requirements for continued listing under NASDAQ Listing Rule 5250(c). The company has 60 days from the date of the NASDAQ letter to submit a plan to regain compliance with NASDAQ's filing requirements for continued listing.
Since the filing of Wolf Haldenstein’s August 16 th press release, the Company’s stock has continued its decline by another 18%, as of the close of trading on August 31, 2012.
As a result of this news, Wolf Haldenstein is continuing its ongoing investigation into the matter.The case name is Galbraith v. Lime Energy Co., Inc., et al., Civil Action No. 12-cv-6465. A copy of the complaint filed in this action is available from the Court, or can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at www.whafh.com. During the Class Period, Lime Energy issued materially false and misleading statements and omitted to state material facts that rendered their affirmative statements misleading as they related to the Company’s financial performance, business prospects, and financial condition. As a result of these materially false and misleading statements, the price of the Company’s securities was artificially inflated during the Class Period. As the truth of the Company’s materially false and misleading statements entered the market, the Company’s stock plummeted.