Lime Energy Co. (NASDAQ:LIME) Investor Files Class Action Lawsuit Over Alleged Securities Laws Violations
July 20, 2012 (Shareholders Foundation) -- An investor in shares of Lime Energy Co. (NASDAQ:LIME) filed a lawsuit in the U.S. District Court for the Northern District of Illinois over alleged violations of Federal Securities Laws in connection with certain financial statements. The lawsuit seeks to recover damages.
According to the complaint the plaintiff alleges on purchased the common stock of Lime Energy Co. (NASDAQ:LIME) during the period between May 13, 2010 and July 17, 2012, Lime Energy Co. and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing allegedly materially false and misleading financial information.
Lime Energy Co. (NASDAQ:LIME) reported that its annual Revenue rose from $54.98million in 2008 to $120.08million in 2011. However, its Net Loss increased from $5.24million in 2010 to $11.58million in 2011.
Then on July 17, 2012, Lime Energy Co. (NASDAQ:LIME) announced that on Sunday, July 15, 2012, the Audit Committee of the Board of Directors of Lime Energy Co. determined that its consolidated financial statements on Form 10-K for the periods ended December 31, 2010 and December 31, 2011 and quarterly report on Form 10-Q for the period ended March 31, 2012 (the “affected financial statements”) may no longer be relied upon.
The plaintiff alleges that that Lime Energy improperly recognized revenue on non-existent revenue, and in other cases, improperly recorded revenue earlier than the Lime Energy Co. should have.
Shares of Lime Energy Co. (NASDAQ:LIME) dropped from $2.03 per share on July 16, 2012 to $0.908 on July 17, 2012.
On July 20, 2012, NASDAQ:LIME shares closed at $0.91 per share.