According to the law firm press release, PSI designs, manufactures, distributes, and supports power systems and custom engineered integrated electrical power generation systems for industrial original equipment manufacturers of off-highway industrial equipment and on-road medium trucks and buses. The Company sells its products and services primarily in North America, as well as in the Pacific Rim and Europe.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company inappropriately recognized revenue for certain transactions; (ii) the Company lacked adequate internal controls over financial reporting; and (iii) as a result of the foregoing, PSI’s public statements were materially false and misleading at all relevant times.
On August 15, 2016, after the market closed, the Company issued a press release and filed a Current Report on Form 8-K with the Securities and Exchange Commission (“SEC”), announcing that the Company needed additional time to file its quarterly report for the quarter ended June 30, 2016 with the SEC.
On this news, PSI’s share price fell $1.52 per share, or 9.85%, to close at $13.91 on August 16, 2016.