Ormat Technologies, Inc. Hit by Investor Lawsuit
An investor in Ormat Technologies, Inc. (Public, NYSE:ORA) filed a lawsuit in the United States District Court for the District of Nevada on behalf of a class consisting of all persons or entities who purchased the securities of Ormat Technologies, Inc. between May 6, 2008 and February 24, 2010, against Ormat Technologies, Inc.
According to the complaint the plaintiff alleges that Ormat Technologies, Inc and certain of its executive officers violated federal securities laws by knowing or recklessly disregarding between May 6, 2008 and February 24, 2010 that their public statements concerning Ormat Technologies, Inc's business, operations and prospects were materially false and misleading.
Ormat Technologies, Inc., located in Reno, NV, is engaged in the geothermal and recovered energy power business. The Company designs, develops, builds, owns and operates geothermal recovered energy-based power plants, usually using equipment that it designs and manufactures.
Shares of Ormat Technologies, Inc. (Public, NYSE:ORA) reached in 2007 $57 per share, in 2008 over $53.50 per share, and 2009 over $43 per share.
Ormat Technologies, Inc. increased its Total Revenue over the last years. Ormat Technologies reported in 2007 Total Revenue of $295.92million with a Net Income of $27.38million, in 2008 Total Revenue of $344.83million with a Net Income of $43.61million, and in Total Revenue of $415.24million with a Net Income of $68.85million.
But on February 24, 2010, Ormat Technologies, Inc disclosed that the Board of Directors and Audit Committee of Ormat Technologies, Inc, upon recommendation of management, had concluded that its financial statements for the year ended December 31, 2008 contained in its Annual Report on Form 10-K for the year then ended require restatement and should no longer be relied upon, and additionally, that Ormat Technologies, Inc’s prior related earnings and news releases and similar communications should also no longer be relied on to the extent they related to the financial statements for the year ended December 31, 2008. Ormat Technologies, Inc additionally indicated that Ormat Technologies, Inc planned to revise its consolidated financial statements as of and for the three- and nine-month periods ended September 30, 2009.
As a result of this news, so the lawsuit, Ormat Technologies, Inc shares (ORA) declined $1.28 per share, to close on February 24, 2010, at $31.90 per share, and further declined over the following two days to close on February 26, 2010, at $28.93 per share, on heavy trading volume. Over the course of these three days of trading, Ormat Technologies, Inc shares declined a total of $4.25 per share. During the last couple trading days ORA shares recovered slightly and traded recently at $30.45 per share.


