According to the law firm press release, Poseidon engages in the development and commercialization of fluid storage and solutions to the oil and gas industry across North America.
The Complaint alleges that throughout the Class Period, and on November 14, 2012 Poseidon published materially false and misleading press releases and financial statements regarding the results of the first three quarters of 2012.
On December 27, 2012, Poseidon issued a press release announcing the formation of a Special Committee to evaluate and resolve various issues stemming from the Company’s write-off of some of its accounts receivable and evolving business strategy.
On February 14, 2013, Poseidon issued a press release announcing the findings of the Special Committee, admitting that, “approximately $95 million to $106 million (subject to detailed quantification by the Company) of the Company’s $148.1 million in revenue for the 9 months ended September 30, 2012 should not have been recorded as revenue in the Company’s financial statements.”
In reaction to the Company’s disclosure on February 14, 2013, the Company’s stock fell $0.61 per share or approximately 69%, from its previous closing price, to close at $0.28 per share.
On May 17, 2013, the Court issued an Order appointing Lead Plaintiff and approving the selection of lead counsel. On June 14, the Lead Plaintiff filed a Consolidated Amended Complaint.