Energy Recovery Executives Under Investigation for False Statements
We have launched an investigation into whether certain officers and directors of Energy Recovery, Inc. (NASDAQ: ERII) breached their fiduciary duties by making false and misleading statements to shareholders and the market. Energy Recovery provides energy solutions to industrial fluid flow markets by converting wasted pressure energy into reusable assets and preserving or eliminating pumping technology in hostile processing environments.
On January 27, 2016 the United States District Court for the Northern District of California upheld securities fraud class action claims against Energy Recovery and certain of its officers and directors regarding contractual negotiations with a prospective client. The Court found that former Chief Executive Officer Thomas S. Rooney, Jr. acted with “deliberate or conscious recklessness” in telling investors that Energy Recovery had secured a verbal agreement with a prospective client. The amended complaint filed in the class action on May 26, 2016 alleges additional violations of the federal securities laws during the period March 7, 2013 through March 5, 2015. Specifically, defendants are alleged to have made false and misleading statements regarding contractual negotiations with multiple prospective clients, commercial interest in oil and gas products, and the operability of core Energy Recovery products, causing the stock price to be artificially inflated.
Schubert Jonckheer & Kolbe's investigation concerns when and how much certain of Energy Recovery’s officers and directors knew or should have known of the false and misleading statements, and whether any corporate insider sold stock based on non-public information. Shareholders interested in seeking the recovery of damages on behalf of the company and securing other remedial measures should contact the firm.
Concerned shareholders who would like more information about their rights and potential remedies should contact Dustin Schubert via email at dschubert@schubertlawfirm.com or by telephone at (415) 788-4220, or fill out the form (at right).
