Itron, Inc. Hit By Stockholder Lawsuit Over Alleged Securities Laws Violations
September 26, 2012 (Update) -- The US District Court granted defendants' motion to dismiss on the basis that the plaintiff failed to allege particularized facts establishing a "strong inference" of scienter as required by the PSLRA (Private Securities Litigation Reform Act).
February 25, 2011 -- An investor in shares of Itron (NASDAQ:ITRI) filed a lawsuit in the United States District Court for the Eastern District of Washington against Itron, Inc. over alleged violations of Federal Securities Laws concerning certain statements.
According to the complaint the plaintiff alleges on behalf of a class consisting of all persons or entities who purchased the securities of Itron, Inc. (NASDAQ:ITRI) between April 28, 2010 and February 16, 2011 that Itron, Inc. and certain of its executive officers violated the Securities Exchange Act of 1933 by, among other thing, issuing between April 28, 2010 and February 16, 2011 false and misleading financial statements.
Itron’s 12months Total Revenue increased from $644.04million in 2006 to $1,687.45million in 2009. Its Net Income, however, decreased from $33.76million in 2006 to a Net Loss of $2.25million in 2009. For the first three quarters in 2010 Itron, Inc. reported a combined nine months Total Revenue that almost exceeds its 12months Total Revenue of 2009. Itron, Inc. reported a combined nine months Total Revenue of $1,644.71million with a combined nine months Net Income of $82.80million.
Shares of Itron, Inc. (Public, NASDAQ:ITRI) traded as high as $72.24 per share during 2006 and increased in 2007 to as high as $106.08 per share. During 2008 ITRI shares fell from as high as $105.03 in August to $37.96 per share in November 08. Itron shares were able to reach almost $80 in April 2010, but then decreased to $55.45 until the end of the year 2010. Shares of Itron regained value in January and beginning of February 2011. On February 16, 2011 ITRI shares traded at $63.62 per share. But then Itron announced on February 16, 2011, among other things that it has restated its financial results for the first three quarters ending March 31, June 30, and September 30, 2010, respectively. According to Itron's press release, the restatement was made "primarily to defer revenue that had been incorrectly recognized on one contract due to a misinterpretation of an extended warranty obligation."
After the announcement ITRI shares dropped to as low as $55.29 during Thursdays trading and closed on Friday at $57.71 per share.