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.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements and/or material omissions, that were in effect throughout the Class Period, regarding the Company’s business, operational and accounting practices, by failing to disclose, among other things, that: (i) the Company’s financial statements during the Class Period did not accurately state the Company’s financial condition and operations, including that they did not accurately state the Company’s revenue and earnings; (ii) as a result, the Company’s financial results were not prepared in accordance with Generally Accepted Accounting Principles (“GAAP”); and (iii) the Company lacked adequate internal and financial controls.On July 17, 2012, the Company made an SEC filing on Form 8-K that made several stunning admissions. The Company’s SEC filing admitted, based upon the results of a partial internal review, that: (i) a portion of the Company’s revenue was improperly recorded – as a result of recording non-existent revenue and/or recording revenue earlier than it should have been recorded; and (ii) the Company’s previously issued financial statements on Form 10-K for the fiscal years ended December 31, 2010 and December 31, 2011, and its quarterly report on Form 10-Q for the period ended March 31, 2012, “may no longer be relied upon” and the misreporting may “require restatement of all of the affected financial statements.” The fact that Lime announced that it will restate its financial statements in effect during the Class Period, and informed investors that these financial statements should not be relied upon is an admission that they were materially false and misleading when originally issued. When the truth began to emerge with Lime’s July 17, 2012 Form 8-K disclosure, the Company’s stock price plummeted $0.91 from its prior trading day close of $2.03 to close on July 17, 2012 at $1.12—a stunning decline of over 44% on unusually heavy trading volume.
If you purchased Lime Energy common stock during the Class Period, you may request that the Court appoint you as lead plaintiff by September 18, 2012. A lead plaintiff is a representative party that acts 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. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wolf Haldenstein, or other counsel of your choice, to serve as your counsel in this action.Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has approximately 70 attorneys in various practice areas; and offices in Chicago, New York City, and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation. If you wish to discuss this action or have any questions, please contact Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone at (800) 575-0735 (Gregory M. Nespole, Esq., Robert B. Weintraub, Esq., or Derek Behnke), via e-mail at firstname.lastname@example.org or visit our website at www.whafh.com. All e-mail correspondence should make reference to Lime Energy.