Zeldes
Haeggquist & Eck, LLP, a shareholder and consumer rights
litigation firm, has commenced an investigation into ECOtality,
Inc. (“ECOtality” or the “Company”) (NASDAQ: ECTY) to determine
whether ECOtality and the Company’s Officers and Directors have violated
the federal securities laws or breached their fiduciary duties owed to
the Company and its shareholders.
ECOtality is a San Francisco, California-based company which
manufactures and sells charging systems for electric vehicles pursuant
to an agreement with the U.S. Department of Energy (“DOE”). Following
quarter after quarter of reporting “record” sales and claiming the
Company was successfully diversifying its business model away from the
heavily-subsidized sales business through the DOE, the Company’s stock
price spiraled, allowing it to stave off a delisting by the NASDAQ and
to conduct an $8.2 million private placement to raise capital. Then, on
August 12, 2013, the Company disclosed that the DOE had suspended all
payments to the Company, had ordered the Company to cease incurring new
costs under its prior arrangement with DOE, and had ordered it to notify
all of ECOtality’s vendors of the DOE’s action. The Company also
disclosed that it was unable to correct design and manufacturing defects
in its charging systems, likely requiring a recall of all connector
plugs on the 12,000 charging stations it had installed to date; that the
Company was unable to meet its 2H 2013 release date for a new industrial
charging device it had promised to release in the 2H 2013; and that as a
result, it had hired a restructuring adviser to evaluate options
including filing a bankruptcy “in the very near future.”
If you are an investor in ECOtality, you may have legal claims against
ECOtality and/or its Officers and Directors. If you wish to discuss this
investigation, or have questions about this notice or your legal rights,
please contact attorney Amber
L. Eck at 619-342-8000, or by email at ambere@zhlaw.com.
There is no cost to you.
Zeldes Haeggquist & Eck, LLP is a full-service law firm which brings
major class actions nationwide on behalf of defrauded investors and
consumers and handles a variety of complex business litigation matters.
Please visit www.zhlaw.com
or our blog
for more information about the firm.
Copyright Business Wire 2013