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Case Status:    SETTLED
On or around 05/28/2014 (Settlement preliminarily approval)

Filing Date: July 20, 2012

According to the law firm press release, Lime Energy is a provider of clean energy solutions. The Complaint alleges that throughout the Class Period the defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about Lime Energy’s business, operations and financial condition. Specifically, the Complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company was improperly recording revenue; (2) as a result, the Company’s revenue and financial results were overstated; (3) as such, the Company’s financial statements were not prepared in accordance with Generally Accepted Accounting Principles (“GAAP”); (4) the Company lacked adequate internal and financial controls; and (5), as a result of the foregoing, the Company’s financial statements were materially false and misleading at all relevant times.

On July 17, 2012, the Company disclosed that the Audit Committee of the Board of Directors of Lime Energy had determined that the Company’s consolidated financial statements filed with the Securities and Exchange Commission on Form 10-K for the periods ended December 31, 2010 and December 31, 2011 and the quarterly report on Form 10-Q for the period ended March 31, 2012, may no longer be relied upon. According to the Company, the Audit Committee made that determination based on the results of a partial internal review conducted by the Company’s management and concluded Friday, July 13, 2012.

The Company further indicated that, based on the results of that partial internal review, the Company’s management and the Audit Committee believe that some portion of the Company’s revenue was improperly recorded Lime Energy indicated that the misreporting may potentially require restatement of its previously issued financial statements. Moreover, the Company stated that, “[i]n some cases, it appears that non-existent revenue may have been recorded” and that “[i]n other cases, it appears that revenue may have been recorded earlier than it should have been.”

As a result of this news, shares of the Company declined $0.91 per share, or 44.83%, to close on July 17, 2012, at $1.12 per share, on unusually heavy trading volume.

On January 28, 2014, the Court approved the order preliminarily approving the settlement between the parties.

COMPANY INFORMATION:

Sector: Services
Industry: Business Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: LIME
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: N.D. Illinois
DOCKET #: 12-CV-05704
JUDGE: Hon. John F. Grady
DATE FILED: 07/20/2012
CLASS PERIOD START: 05/13/2010
CLASS PERIOD END: 07/17/2012
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Glancy Binkow & Goldberg LLP (Los Angeles)
    1801 Ave. of the Stars, Suite 311, Glancy Binkow & Goldberg LLP (Los Angeles), CA 90067
    310.201.915 310. 201-916 · info@glancylaw.com
  2. Pomerantz Haudek Block Grossman & Gross LLP (Chicago)
    10 South LaSalle Street, Suite 3505, Pomerantz Haudek Block Grossman & Gross LLP (Chicago), IL 60603
    312.377.1181 312.377.1181 ·
  3. The Lin Law Firm
    2705 S. Diamond Bar Blvd., Suite 398, The Lin Law Firm, CA 91765
    (909) 595-5522 (909) 595-5519 ·
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