On or around 03/19/2018 (Date of order of distribution of settlement)
Filing Date: January 20, 2015
According to the law firm press release, the lawsuit alleges that Energy Recovery issued materially false and misleading statements to investors by failing to disclose significant internal control deficiencies that rendered the Company’s periodic reports filed with the SEC false and misleading. On September 10, 2014, Energy Recovery announced that it terminated its Senior Vice President of Sales for cause after becoming aware of his breaching of a duty of trust and engaging in conduct which created a conflict of interest with the Company over the course of several years. On January 13, 2015, Energy Recovery announced the resignation of its CEO. The suit claims that these adverse disclosures caused the price of the Company’s stock to drop, damaging investors.
Plaintiffs filed an amended complaint on May 26, 2016.
The parties entered into a Stipulation of Settlement on February 15, 2017. The Settlement was preliminarily approved by the Court on April 11. On August 28, the Court granted final approval of the Settlement and dismissed this case.
On March 19, 2018, the Court issued an Order approving distribution of the net Settlement fund.
Company & Securities Information
Defendant: Energy Recovery, Inc.
Sector: Capital Goods
Industry: Misc. Capital Goods
Headquarters: United States
Ticker Symbol: ERII
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.
First Identified Complaint
Joseph Sabatino, et al. v. Energy Recovery, Inc., et al.