Ormat Technologies Inc (NYSE: ORA) Investor Securities Class Action Lawsuit 06/11/2018

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Company Name(s): 
Ormat Technologies
Case Name: 
Ormat Technologies Shareholder Class Action Lawsuit 06/11/2018
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: ORA
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
06/11/2018
Class Period Begin: 
08/08/2017
Class Period End: 
05/15/2018
Court of Filing: 
U.S. District Court for the District of Nevada
Deadline To File for Lead: 
08/10/2018
Summary: 

June 11, 2018 - An investor in shares of Ormat Technologies Inc (NYSE: ORA) filed a lawsuit in the U.S. District Court for the District of Nevada over alleged violations of Federal Securities Laws by Ormat Technologies Inc in connection with certain allegedly false and misleading statements made between August 8, 2017 and May 15, 2018.

Reno, NV based Ormat Technologies Inc engages in the geothermal and recovered energy power business worldwide. Ormat Technologies Inc reported that its annual Total Revenue rose from $662.59 million in 2016 to $692.81 million in 2017 and that its Net Income increased from $93.93 million in 2016 to $155.48 million in 2017.

Shares of Ormat Technologies Inc (NYSE: ORA) grew from $26.68 per share in early 2015 to as high as $69.62 per share in January 2018.

On May 11, 2018, Ormat Technologies Inc disclosed that it's delaying the filing of its Quarterly Report for the period ended March 31, 2018 with the SEC because "management has identified an error in the Company's financial statement presentation of deferred income tax assets and deferred income tax liabilities that affects the Company's balance sheets in previous reporting periods." Ormat Technologies Inc further disclosed that "[t]he Company is evaluating the impact of this error on its consolidated financial statements and the extent to which the Company's annual and quarterly consolidated financial statements filed in previous periods require revision or amendment."

Then, on May 16, 2018, Ormat Technologies Inc revealed that "it will restate its second, third and fourth quarter 2017 financial statements and its full-year 2017 financial statements," and therefore, "investors should no longer rely upon the Company's previously issued financial statements for the periods set forth above, earnings releases for these periods, and other communications relating to these financial statements."

According to the complaint the plaintiff alleges on behalf of purchasers of Ormat Technologies Inc (NYSE: ORA) common shares between August 8, 2017 and May 15, 2018, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between August 8, 2017 and May 15, 2018, the defendants' made false and/or misleading statements and/or failed to disclose that there were errors in the income tax provision primarily relating to Ormat Technologies Inc's valuation allowance based on its ability to utilize foreign tax credits in the U.S. prior to their expiration, that Ormat Technologies Inc netted certain deferred income tax assets and deferred income tax liabilities across different tax jurisdictions that are not permitted to be netted pursuant to United States generally accepted accounting principles, that Ormat Technologies Inc’s internal controls over financial reporting were ineffective during the class period, that due to the foregoing, Ormat Technologies Inc would need to restate its second, third and fourth quarter 2017 financial statements and its full-year 2017 financial statements, and that as a result, defendants' statements about the Company's business, operations and prospects were materially false and misleading and/or lacked a reasonable bases at all relevant times.