According to the law firm press release, Advanced Emissions Solutions, Inc., together with its subsidiaries, provides environmental technologies and specialty chemicals to the coal-burning electric power generation industry, primarily in the United States. It operates through three segments: Refined Coal, Emission Control, and CO2 Capture.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, and failed to disclose material adverse facts about the Company's business, operations, prospects and performance. Specifically, during the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company was employing improper accounting practices, particularly with respect to its method for recognizing revenue for its Emission Control business segment contracts; (ii) the Company was experiencing increased operating losses, primarily driven by a reduction of revenues and margins for its Emission Control segment with a corresponding increase in backlog; (iii) the improper accounting practices would require the Company to restate its reported financial statements, and (iv) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On March 13, 2014, the Company announced in a Securities and Exchange Commission ("SEC") Form 8-K filing that, "the Company is currently reviewing its accounting practices, particularly its methods of recognizing revenue for its Emission Control business segment contracts. The Company expects the result of this review will likely result in increased operating losses, primarily driven by a reduction of revenues and margins for its emission control segment with a corresponding increase in backlog for the same period."
On this news, shares of Advanced Emissions fell from $54.23 to $50.90, on March 13, 2014, on unusually heavy trading volume.
On February 19, 2015, the court issued an Order appointing lead plaintiff and approving lead counsel. Lead plaintiff filed a consolidated complaint on April 20.
On July 29, 2016, the parties filed a Stipulation of Settlement. This Settlement was preliminarily approved by the Court on October 13. Final approval was granted on February 10, 2017.