If you have purchased shares of ECOtality Inc (NASDAQ:ECTY) between April 16, 2013 and August 9, 2013, call 1-800-804-8799 right now to protect your rights.
Filing deadline: 10/14/2013
Lodging a complaint on behalf of everyone who made a purchase of common stocks owned by ECOtality Inc. between April 16, 2013 and August 9, 2013, the plaintiff alleges that ECOtality's officers and directors violated the Securities Exchange Act of 1934. The defendants have been accused of hiding important financial information from their investors during the last four months.
The plaintiff is accusing ECOtality Inc. of not being upfront with investors about having design and manufacturing defects in their charging systems; not having enough sales and installations to stay afloat in the second half of 2013; falling behind schedule in making Minit Chargers; and not being able to obtain enough requisite financing to meet its capital needs. According to the complaint, ECOtality Inc. became liable to pay $855,000 for back wages and damages to the U.S. Department of Labor once it was discovered that they were not in compliance with US labor laws and that the DOE decided to suspend all of its payments to ECOtality Inc.
Another financial matter that ECOtality Inc. allegedly kept concealed from investors pertains to the planned restructuring of its company. On August 12, 2013, ECOtality Inc. disclosed that they retained a restructuring advisor to help them explore options for restructuring or selling off some of their assets, if not their entire business. ECOtality Inc. also determined that they may need to file a petition commencing a case under the United States Bankruptcy Code in the event that they would need to restructure or sell their company.
Own shares of ECOtality Inc (NASDAQ:ECTY)? Contact us to protect your rights.
If you have purchased shares of ECOtality Inc (NASDAQ:ECTY) between April 16, 2013 and August 9, 2013, call 1-800-804-8799 right now to protect your rights. Complete the form on this page or call attorney Bill Kyros at 1-800-804-8799 right now to protect your rights.