Hagens Berman Reminds ECOtality Investors Of Oct. 15, 2013, Class-Action Deadline And Continuing Investigation
Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, today reminded investors of the Oct. 15, 2013, deadline to move to be a lead plaintiff in a securities class-action lawsuit against ECOtality, Inc., (NASDAQ: ECTY) and of the continuing investigation into whether ECOtality withheld critical information from investors. Investors are invited to inquire about their options with Hagens Berman attorneys by emailing ECTY@hbsslaw.com.
Investors who purchased ECTY common stock between April 16, 2013, and Aug. 9, 2013, (the “Class Period”) and suffered significant financial losses may also contact Hagens Berman Partner Reed Kathrein, who is leading the firm’s investigation, by calling (510) 725-3000. More information is available online at http://hb-securities.com/investigations/ECTY.
On June 19, 2013, ECOtality closed an $8.2 million private placement of over 5 million shares of common stock priced at $1.60 and warrants exercisable at $2.04 per share.
Two months later, on Aug. 12, 2013, the company announced several previously undisclosed production and financial problems. ECOtality also revealed it had hired a restructuring adviser to evaluate the company’s options, including a possible bankruptcy filing that could be made “in the very near future.”Following the announcement the company’s stock price dropped more than 87 percent. The lawsuit alleges that ECOtality concealed major issues, including: defects and performance shortfalls in some of its charging systems, the inability to release products as scheduled and a lack of sufficient commercial sales and investor funding to sustain the company’s operations. “Our investigation seeks to discover what ECOtality knew and when,” said Hagens Berman Partner Reed Kathrein. “Considering the litany of issues ECOtality has been facing, it is suspect that only in August were investors made aware of something as catastrophic as a possible bankruptcy filing.” Persons with non-public information may want to consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.
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