According to a press release dated March 10, 2010, the Complaint charges the defendants and certain of the Company’s executive officers with violations of federal securities laws. The Complaint alleges that throughout the Class Period defendants knew or recklessly disregarded that their public statements concerning Ormat’s business, operations and prospects were materially false and misleading. Specifically, it is alleged that defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company was improperly continuing to capitalize costs for individual projects after Ormat had decided to abandon further exploration and development of individual projects instead of expensing those costs in the period in which any such determination was made; (2) that, as a result, the Company’s financial results were overstated during the Class Period; (3) that the Company’s financial results were not prepared in accordance with Generally Accepted Accounting Principles (“GAAP”); (4) that the Company lacked adequate internal and financial controls; and (5), as a result of the above, that the Company’s financial statements were materially false and misleading at all relevant times.
On June 3, 2010, Judge Edward C. Reed, Jr. signed the Order consolidating several related actions. According to the Order, Jianxun Dong, George Umino, and the A.R.D. Investment Club, L.P. are appointed as lead plaintiff in the consolidated action; their choice of Bernstein Liebhard LLP and Glancy Binkow & Goldberg LLP as co-lead counsel and the Law Offices of Mark Wray as liaison counsel for all plaintiffs and the class in the consolidated action is approved. On July 9, 2010, the lead plaintiff filed a Consolidated Amended Class Action Complaint. The defendants responded by filing a motion to dismiss the Consolidated Complaint on August 13, 2010.
According to the Order signed by Judge Edward C. Reed, Jr. on March 3, 2011, the Defendants' 43 Motion to Dismiss is granted in part and denied in part on the following basis: Plaintiff's allegations based on Ormat's statements regarding the North Brawley plant shall be dismissed, and Plaintiffs' allegations based on the 2008 Restatement shall not be dismissed.
On July 22, 2011, the plaintiffs filed a motion to certify the class.
On March 30, 2012, Judge Edward C. Reed, Jr. signed the Order Preliminarily Approving Settlement And Providing For Notice Of Proposed Settlement.
On October 16, 2012, the Court issued an Order granting the Unopposed Motion for Final Approval and also granting the Unopposed Motion for Attorneys' Fees and Costs. In addition, a Final Judgment and Order of Dismissal with Prejudice was entered into the Court's docket.