Zeldes Haeggquist & Eck, LLP Announces Investigation of ECOtality, Inc.
SAN DIEGO -- August 13, 2013
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
email@example.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.
Zeldes Haeggquist & Eck, LLP
Amber L. Eck, 619-342-8000
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