KL LLP Announces That it Has Filed a Class Action Complaint With Additional Allegations Against Orion Energy Systems, Inc. and Other Defendants
KL LLP has filed a securities class action complaint against Orion Energy Systems, Inc. (“Orion” or the “Company”) (NasdaqGM: OESX and other defendants in the U.S. District Court for the Southern District of New York on behalf of investors who purchased the common stock of Orion between December 18, 2007 through February 6, 2008 (the “Class Period”). This complaint contains additional allegations — not found in complaints filed by other law firms — further supporting the claims made by plaintiffs. As described below, if you purchased Orion’s common stock during the Class Period, you have until April 11, 2008 to move to be appointed as a Lead Plaintiff.
The Complaint alleges that the defendants violated the Securities Act of 1933 by publicly disseminating materially false and misleading information in the Registration Statement and Prospectus issued in connection with the Orion’s initial public offering (the “IPO”). Orion realized over $78 million in proceeds from the IPO, while Chief Executive Officer Neal R. Verfuerth and family sold 600,000 shares for proceeds of approximately $7 million. Orion and certain of its officers and directors are alleged to have made materially false and misleading statements and/or omitted the following material information in the Registration Statement and Prospectus: (i) that Orion was having to rapidly shift its focus from its core product of HIF lighting systems to its new Phase 2 and Phase 3 products which were untested in the marketplace; (ii) that as a result of this shift in focus, Orion’s revenues would be negatively impacted by, among other things, having to retrain its sales force to market these new products; and (iii) that well before the IPO, the Company had commenced a major factory upgrade which would materially and adversely impact revenues, at a minimum, in Orion’s fourth quarter.
In a conference call with analysts held after the close of trading on February 6, 2008, during which, according to analysts, defendant Verfuerth gave “evasive” and “confusing” answers, Orion revealed that its revenues for the quarter ending March 31, 2008 would decline sequentially as the Company took aggressive measures to promote new technologies and a new business model. Shares of Orion fell from a close of $14.90 per share on February 6, 2008 to close at $8.51 the next day on extraordinary volume. After the conference call, the Company also revealed to an analyst that, before the IPO, Orion had begun a major factory upgrade and that this retooling negatively impacted revenues in the fourth quarter.
If you purchased Orion common stock during the Class Period (December 18, 2007 through February 6, 2008), you may, no later than April 11, 2008, move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Please Contact Us or call us at 202/261-3553 for a more thorough explanation of the Lead Plaintiff selection process and the claims that can be asserted against Orion and the other defendants.