NEW YORK, June 15, 2018 (GLOBE NEWSWIRE) — Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Ormat Technologies, Inc. (“Ormat” or the “Company”) (NYSE:ORA) of the August 10, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Ormat stock or options between August 8, 2017 and May 15, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/ORA. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
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The lawsuit has been filed in the U.S. District Court for the District of Nevada on behalf of all those who purchased Ormat securities between August 8, 2017 and May 15, 2018 (the “Class Period”). The case, Costas v. Ormat Technologies, Inc., et al, No. 3:18-cv-00271 was filed on June 11, 2018 and has been assigned to Judge Robert Clive Jones.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) there were errors in the income tax provision relating to Ormat’s valuation allowance based on its ability to utilize foreign tax credits in the U.S. prior to their expiration; (2) Ormat netted certain deferred income tax assets and deferred income tax liabilities across different tax jurisdictions that are not permitted to be netted pursuant to generally accepted accounting principles; (3) Ormat’s internal controls over financial reporting were ineffective; (4) this forced the Company to restate its second, third, and fourth quarter 2017 financial statements; and (5) consequently, Ormat’s statements about its business, operations, and prospects were materially false and misleading.
On May 11, 2018, Ormat announced that it was delaying the filing of its Quarterly Report for the period ended March 31, 2018 with the United States Securities and Exchange Commission (“SEC”) because management had failed to identify an error with its financial statement presentation, which impacted the Company’s balance sheets over previous reporting periods.
On this news, Ormat’s share price fell from $56.35 per share on May 10, 2018 to a closing price of $52.77 on May 14, 2018—a $3.58 or a 6.35% drop over two trading days.
On May 16, 2018, Ormat announced that it would restate its second, third, and fourth quarter 2017 financial statements and its full-year 2017 financial statements and warned investors not to rely upon the Company’s previously issued financial statements.
On this news, Ormat’s share price fell from $53.02 per share on May 15, 2018 to a closing price of $52.35 on May 16, 2018—a $0.67 or a 1.26% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. 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. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Ormat’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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