Robbins Geller Rudman & Dowd LLP Files Class Action Suit against ECOtality,
NEW YORK -- August 15, 2013
Robbins Geller Rudman & Dowd LLP (“Robbins Geller”)
(http://www.rgrdlaw.com/cases/ecotality/) today announced that a class action
has been commenced in the United States District Court for the Northern
District of California on behalf of purchasers of ECOtality, Inc.
(“ECOtality”) (NASDAQ:ECTY) common stock during the period between April 16,
2013 and August 9, 2013 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than
60 days from today. If you wish to discuss this action or have any questions
concerning this notice or your rights or interests, please contact plaintiff’s
counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at
800/449-4900 or 619/231-1058, or via e-mail at email@example.com. If you are a
member of this class, you can view a copy of the complaint as filed or join
this class action online at http://www.rgrdlaw.com/cases/ecotality/. Any
member of the putative class may move the Court to serve as lead plaintiff
through counsel of their choice, or may choose to do nothing and remain an
absent class member.
The complaint charges ECOtality and certain of its officers and directors with
violations of the Securities Exchange Act of 1934. ECOtality is an electric
transportation and storage technologies company that sells electric vehicle
(“EV”) supply equipment (or “EVSE”) through its customer-facing brand of smart
EV chargers, Blink.
The complaint alleges that during the Class Period, defendants issued false
and misleading statements regarding the Company’s business and future
prospects. Specifically, the complaint alleges that defendants concealed the
following material adverse facts from the investing public during the Class
Period: (a) due to design and manufacturing defects, some of ECOtality’s
charging systems had been causing overheating and even the melting of
connector plugs when charging vehicles; (b) despite efforts undertaken to
transition the Company’s business model from subsidizing installations of
EVSEs under the Department of Energy’s (“DOE”) EV Project to regular
commercial sales and installations, ECOtality was not achieving enough
commercial sales and installations to sustain operations in the second half of
2013; (c) due to “unacceptable performance shortfalls during prototype
verification testing,” ECOtality was not on track to meet the scheduled
release of a new Minit Charger product for industrial customers in the second
half of 2013; (d) due to would-be potential investors’ unwillingness to
provide additionally needed financing, ECOtality was unable to obtain the
requisite financing to meet its short-term and long-term capital needs and
would be unable to meet its obligations to the DOE’s EV Project and the DOE
would suspend all payments to the Company; and (e) due to non-compliance with
the nation’s labor laws, the Company was liable to the U.S. Department of
Labor for $855,000 for the payment of back wages and damages.
On August 12, 2013, before the opening of trading, ECOtality announced that
the Company had hired a “restructuring” adviser to evaluate options, including
new financing, a possible sale of the Company or bankruptcy filing. The
Company’s Current Report filed with the SEC on Form 8-K that day emphasized,
in pertinent part, that a bankruptcy filing could be made “in the very near
future” following, among other things, disappointing sales and suspension of
payments from the federal government. On this news, the price of ECOtality
common stock, which had traded as high as $2.40 per share in intraday trading
during the Class Period, plummeted more than 87% from that level to close at
$0.30 per share when trading resumed on August 12, 2013.
Plaintiff seeks to recover damages on behalf of all purchasers of ECOtality
common stock during the Class Period (the “Class”). The plaintiff is
represented by Robbins Geller, which has expertise in prosecuting investor
class actions and extensive experience in actions involving financial fraud.
Robbins Geller represents U.S. and international institutional investors in
contingency-based securities and corporate litigation. With nearly 200 lawyers
in nine offices, the firm represents hundreds of public and multi-employer
pension funds with combined assets under management in excess of $2 trillion.
The firm has obtained many of the largest recoveries and has been ranked
number one in the number of shareholder class action recoveries in MSCI’s Top
SCAS 50 every year since 2003. Please visit http://www.rgrdlaw.com for more
Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman, 800-449-4900
David A. Rosenfeld
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