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 shareholder@powerstaylor.com.
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%.
The
Briscoe Law Firm, PLLC is a full service business litigation,
commercial transaction, and public advocacy firm with more than 20 years
of experience in complex litigation and transactional matters.
Powers
Taylor, LLP is a boutique litigation law firm that handles a variety
of complex business litigation matters, including claims of investor and
stockholder fraud, shareholder oppression, shareholder derivative suits,
and security class actions.
Copyright Business Wire 2013