Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm,
reminds investors of the Oct. 15, 2013, lead plaintiff deadline 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 financial losses
exceeding $100,000 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.
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.
About
Hagens Berman
Hagens Berman Sobol Shapiro, LLP is an investor-rights class-action law
firm with offices in nine cities including the San Francisco Bay Area
where this lawsuit has been filed. The Firm represents investors,
whistleblowers, workers and consumers in complex litigation. More about
the law firm and its successes can be found at www.hbsslaw.com.
The Firm’s Securities Newsletter is at http://www.hb-securities.com/newsletter.
Copyright Business Wire 2013