Law Offices of Howard G. Smith Announces Investigation on Behalf of
Investors of ECOtality, Inc.
BENSALEM, Pa. -- August 23, 2013
Law Offices of Howard G. Smith announces that it is investigating potential
claims on behalf of purchasers of the securities of ECOtality, Inc.
(“ECOtality” or the “Company”) (NASDAQ:ECTY) concerning possible violations of
federal securities laws. The investigation focuses on ECOtality’s operations
and financial prospects between April 16, 2013 and August 9, 2013.
ECOtality manufactures and sells charging systems for electric vehicles (EV),
including the Minit-Charger line of fast-charge systems for off-road
industrial applications. The investigation concerns allegations that the
Company misrepresented or failed to disclose that: (1) certain of ECOtality’s
charging systems had been causing overheating, and even melting connector
plugs, when charging vehicles; (2) the Company was not achieving enough
commercial sales and installations to sustain operations in the second half of
2013; (3) the Company was not on track to meet the scheduled release of a new
Minit Charger product for industrial customers in the second half of 2013; (4)
the Company was unable to obtain the financing to meet its short-term and
long-term capital needs and would be unable to meet its obligations to the
U.S. Department of Energy’s EV Project; and (5) the Company was liable to the
U.S. Department of Labor for $855,000 for the payment of back wages and
On August 12, 2013 ECOtality issued a press release announcing that it had
hired a "restructuring" adviser to evaluate options, including new financing,
a possible sale of the Company or bankruptcy filing. Following this news, the
price of ECOtality shares dropped nearly 80%, to $0.30 per share, from the
previous day’s close of $1.46, on volume of more than 15 million shares
If you purchased ECOtality securities, if you have information or would like
to learn more about these claims, or if you purchased ECOtality shares prior
to April 16, 2013 and have any questions concerning this announcement or your
rights or interests with respect to these matters, please contact Howard G.
Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite
112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at
(888) 638-4847, or by email to email@example.com, or visit our
website at www.howardsmithlaw.com.
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
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