According to the Complaint, Lime Energy filed a Form 8-K on July 17, 2012 disclosing that the Audit Committee of the Board of Directors determined that the Company’s consolidated financial statements on Form 10-K for the periods ending December 31, 2010 and December 31, 2011 and quarterly report on Form 10-Q for the period ended March 31, 2012 may no longer be relied upon. The Audit Committee made that determination based on the results of a partial internal review conducted by the Company’s management which was concluded on July 13, 2012.The Company further stated 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. 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 that it should have been. Further, the Company disclosed that at the time of the filing, it could not make a reliable estimate of the magnitude of the misreported revenue or the effects on the affected financial statements. Lastly, the Company stated that it expects that the misreporting may potentially require restatement of all of the affected financial documents. On this news, shares of the Company declined over 44%, closing at $1.12 per share on July 17, 2012, on volume of over 2 million shares. If you wish to serve as lead plaintiff, you must move the Court no later than September 18, 2012. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.Attorney advertising. Prior results do not guarantee a similar outcome.