ECOtality Inc (NASDAQ: ECTY) Investor Securities Class Action Lawsuit 08/15/2013

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Company Name(s): 
ECOtality
Case Name: 
ECOtality Shareholder Class Action Lawsuit 08/15/2013
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NASDAQ: ECTY
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
08/15/2013
Class Period Begin: 
04/16/2013
Class Period End: 
08/12/2013
Court of Filing: 
U.S. District Court for the Northern District of California
Deadline To File for Lead: 
10/14/2013
Date Settled: 
03/06/2015
Settlement Amount: 
$1,100,000
Deadline to Participate in Settlement: 
06/18/2015
Settlement Notice: 
Settlement Proof: 
Summary: 

August 28, 2015 - The court held a final settlement hearing and approved the settlement, the plan of allocation and the motion for attorneys’ fees and expenses.

March 6, 2015 - The court preliminarily approved the settlement.

December 22, 2014 - Parties filed a stipulation of settlement.

September 16, 2014 - The court granted the defendants' motion to dismiss and granted lead plaintiff leave to file an amended complaint.

May 2, 2014 - The defendants filed a motion to dismiss.

January 31, 2014 - The lead plaintiff filed an amended complaint.

December 13, 2013 - The lead plaintiff and lead counsel were appointed and all cases were consolidated.

October 15, 2013 - Lead plaintiff motions were filed.

August 15, 2013 - An investor in shares of ECOtality Inc (NASDAQ: ECTY) filed a lawsuit in the U.S. District Court for the Northern District of California against ECOtality Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between April 16, 2013 and August 9, 2013.

According to the complaint the plaintiff alleges on behalf of purchasers ECOtality Inc (NASDAQ: ECTY) common stock during the period, that ECOtality Inc and certain of its officers and directors violated the Securities Exchange Act of 1934.

More specifically, the plaintiff alleges that defendants allegedly concealed the following material adverse facts from the investing public during between April 16, 2013 and August 9, 2013, that due to design and manufacturing defects, some of ECOtality Inc’s charging systems had been causing overheating and even the melting of connector plugs when charging vehicles, that despite efforts undertaken to transition ECOtality Inc’s business model from subsidizing installations of EVSEs under the Department of Energy’s (“DOE”) EV Project to regular commercial sales and installations, ECOality Inc was not achieving enough commercial sales and installations to sustain operations in the second half of 2013, that due to “unacceptable performance shortfalls during prototype verification testing,” ECOtality Inc was not on track to meet the scheduled release of a new Minit Charger product for industrial customers in the second half of 2013, that due to would-be potential investors’ unwillingness to provide additionally needed financing, ECOtality Inc was unable to obtain the requisite financing to meet its short-term and long-term capital needs and would be unable to meet its obligations to the DOE’s EV Project and the DOE would suspend all payments to ECOtality Inc, and that due to non-compliance with the nation’s labor laws, ECOtality Inc was liable to the U.S. Department of Labor for $855,000 for the payment of back wages and damages.

Shares of ECOtality Inc (NASDAQ: ECTY) declined from $6.19 per share in June 2010 to as low as $0.32 per share in November 2012.

On April 15, 2013, ECOtality Inc reported its fourth quarter and fiscal 2012 results. ECOtality Inc’s annual Total Revenue rose from $8.60 million in 2009 to $54.73 million in 2012 and that its respective Net Loss declined from $29.51 million to $9.58 million.

Shares of ECOtality Inc (NASDAQ: ECTY) grew from almost $0.30 per share in November 2012 to $1.97 per share on June 7, 2013.

Then on August 12, 2013, ECOtality Inc disclosed that ECOtality Inc’s Board of Directors has retained a restructuring advisor. Among other things, ECOtality Inc also said that although ECOtality Inc is currently exploring options for a restructuring or sale of the entire business and/or assets of ECOtality Inc, it may need to file a petition commencing a case under the United States Bankruptcy Code as part of any such process or otherwise in the very near future.

Shares of ECOtality Inc (NASDAQ: ECTY) declined to $0.22 on August 15, 2013.