Broadwind Energy, Inc.
Class Period: Mar 17, 2009 to Aug 9, 2010
Lead Plaintiff Deadline: Apr 12, 2011 + Deadline passed
Summary of Case:
A securities class action has been filed against Broadwind Energy, Inc. (BWEN) ("Broadwind" or the "Company") on behalf of all securities purchasers from March 17, 2009 through August 9, 2010, inclusive ("Class Period") in the United States District Court for the Northern District of Illinois.
The complaint alleges that throughout the Class Period, defendants failed to disclose material adverse facts about Broadwind's true financial condition, business and prospects. Specifically, the complaint alleges that: (a) Broadwind's RBA subsidiary was experiencing significant issues with key contracts; (b) Broadwind was materially overstating its financial condition by improperly delaying the recognition of the impairment of its goodwill and intangible assets related to its RBA subsidiary; (c) as a result of the above, Broadwind's financial statements were not prepared in accordance with Generally Accepted Accounting Procedures and, therefore, were materially false and misleading; (d) the Company was experiencing a reduction in demand from its customers; and (e) as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and its prospects.
On March 12, 2010, Broadwind announced its financial results for the fourth quarter and fiscal year of 2009, the period ended December 31, 2009. For the quarter, the Company reported revenues of $32.9 million and a net loss of $92.6 million or $0.96 per basic and diluted share, including a goodwill and intangible charge of $82.2 million. In reaction to the Company's weak 2009 fourth quarter results, shares of the Company's stock fell $1.21 per share, or 21%, to close at $4.47 per share, on heavy trading volume.
Then, on August 9, 2010, Broadwind issued a press release announcing its financial results for the second quarter of 2010, the period ended June 30, 2010. For the quarter, the Company reported revenues of $36.6 million and a net loss of $14.2 million or $0.13 per share. In reaction to the disclosure of the continued weak demand for the Company's products, the price of Broadwind's stock fell $0.35 per share, or 12%, to close at $2.50 per share.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.