NEW YORK, Aug. 16, 2013 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of all persons or entities who purchased the common stock of ECOtality, Inc. ("ECOtality" or the "Company") (Nasdaq: ECTY ) between April 16, 2013 and August 9, 2013 ("Class Period"), seeking remedies under the federal securities laws.
The Complaint alleges that Defendants concealed the following facts from the investing public during the Class Period: (a) the Company's charging systems had been causing overheating and even the melting of connector plugs when charging vehicles; (b) the Company was not achieving enough commercial sales and installations to sustain operations in the second half of 2013; (c) the Company was not on track to meet the scheduled release of a new Minit Charger product for industrial customers in the second half of 2013; (d) the Company was unable to obtain the financing to meet its short-term and long-term capital needs and would be unable to meet its obligations to the DOE's EV Project; and (e) the Company was liable to the U.S. Department of Labor for $855,000 for the payment of back wages and damages.
On August 12, 2013, before the opening of trading, the Company announced that it had hired a "restructuring" adviser to evaluate options, including new financing, a possible sale of the Company or bankruptcy filing.
If you wish to serve as lead plaintiff, you must move the Court no later than October 14, 2013. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com .
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Thomas J. McKenna, Esq. Gregory M. Egleston, Esq. Gainey McKenna & Egleston (212) 983-1300
