ECOtality Shareholder Alert: Briscoe Law And Powers Taylor Investigate Possible Breaches Of Fiduciary Duty By Officers And Directors
Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, and the securities litigation firm of Powers Taylor, LLP announce that a federal class action lawsuit has been filed against ECOtality, Inc. (“ECOtality” or “Company”) (NasdaqCM: ECTY). The firms are investigating additional legal claims against the officers and Board of Directors of ECOtality during the period of April 16, 2013 and August 9, 2013 (the “Class Period”).
If you are an affected investor and you want to learn more about the lawsuit or join the action, contact Willie Briscoe at The Briscoe Law Firm, PLLC, (214) 239-4568, or via email at WBriscoe@TheBriscoeLawFirm.com, or Zachary Groover at Powers Taylor, LLP, toll free (877) 728-9607, via e-mail at firstname.lastname@example.org. There is no cost or fee to you.
In a recently filed federal class action complaint, ECOtality and certain of its officers and directors were charged with violating certain provisions of the Securities Exchange Act of 1934. Specifically, the complaint alleges that, among other things, defendants misrepresented and/or failed to disclose that: (a) some of ECOtality’s charging systems had been causing overheating and even melting of connector plugs when charging vehicles, causing discord with customers and potentially requiring that the Company replace all connector plugs on approximately 12,000 stations due to design and manufacturing defects; (b) although the Company was trying to transition its business model from subsidizing installations of EVSEs under the EV Project to regular commercial sales and installations, the Company was not achieving enough commercial EVEC sales and installations to sustain operations in the second half of 2013; (c) because of “unacceptable performance shortfalls during prototype verification testing,” the Company was not able to meet the scheduled release of new Minit Charger product for industrial customers in the second half of 2013; (d) the Company was not able to secure the required financing to meet its short-term and long-term capital needs because would-be potential investors were unwilling to provide these additional funds; (e) due to the inability to secure the financing needs, the Company would not be able to meet its obligations to the DOE’s EV Project and the DOE would suspend all payments to the Company; and (f) the Company was liable to the U.S. Department of Labor (“DOL”) for $855,000 for the payment of back wages and damages due to non-compliance with the nation’s labor laws. According to the complaint, when the Company finally disclosed the above information, ECOtality’s shares plummeted more than 87%.
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