Plymouth-based Orion Energy Systems Inc. today announced that it has retained the law firm of Skadden, Arps, Slate, Meagher & Flom LLP as its defense counsel in purported securities class action lawsuits filed against the company.
The lawsuits were filed in the U.S. District Court for the Southern District of New York. The lawsuits allege, among other things, that Orion, certain of its officers and members of its board of directors made misstatements and failed to disclose material information in the registration statement and prospectus for Orion's recently completed initial public offering.
The named defendants include Orion chief executive officer Neal Verfuerth.
Orion announced today that it believes it has "substantial legal and factual defenses in this action, which it intends to pursue vigorously."
Orion's common stock is listed on the Nasdaq Global Market under the symbol "OESX." The company raised more than $78 million with its initial public offering on Dec. 19.
Klafter & Olsen LLP, a law firm with offices in Washington, D.C., and New York has filed a securities class action complaint against Orion on behalf of investors who purchased Orion's common stock between Dec. 18, 2007, through Feb. 6, 2008.
Investors who purchased Orion's stock in that time frame have until today to file a motion to be appointed as a lead plaintiff in the class action suit.
The complaint alleges that the defendants violated the Securities Act of 1933 by publicly disseminating materially false and misleading information in the registration statement and prospectus issued in connection with the Orion's IPO.
The suit alleges that Verfuerth and his family sold 600,000 shares for proceeds of approximately $7 million. The suit claims Orion and its officers and directors made materially false and misleading statements and/or omitted material information in the IPO.
The suit claims Orion did not disclose that it was having to rapidly shift its focus from its core product of HIF lighting systems to its new products that were untested in the marketplace.
Orion hires attorneys to defend against class action lawsuit
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