Energy Recovery, Inc. Class Action Lawsuit
- Company Name
- Energy Recovery, Inc.
- Stock Symbol
- Class Period
- August 2, 2017 to June 29, 2020
- Motion Deadline
- September 20, 2020
- Southern District of New York
The Energy Recovery, Inc. class action lawsuit charges Energy Recovery and certain of its officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Energy Recovery common shares between August 2, 2017 and June 29, 2020, inclusive (the “Class Period”). The Energy Recovery class action lawsuit was commenced on July 21, 2020 in the Southern District of New York and is captioned Visser v. Energy Recovery, Inc., No. 20-cv-05647.
Energy Recovery develops and manufactures technologies utilized in the water desalination industry. In December 2014, Energy Recovery announced the launch of the VorTeq hydraulic pumping system, which was designed to increase run-time and reduce maintenance costs associated with pump failures. On October 19, 2015, Energy Recovery announced that it had signed a fifteen-year deal with Schlumberger Technology Corp., which gave Schlumberger the exclusive right to the use of Energy Recovery’s VorTeq technology (the “Schlumberger Licensing Agreement”).
The Energy Recovery class action lawsuit alleges that defendants made materially false and/or misleading statements, as well as failed to disclose that: (i) Energy Recovery and Schlumberger had different strategic perspectives regarding commercialization of VorTeq, which created a substantial risk of early termination of Energy Recovery’s exclusive licensing agreement with Schlumberger; (ii) accordingly, Energy Recovery’s revenue guidance and expectations of future license revenue were false and lacked a reasonable basis; and (iii) as a result, defendants’ public statements were materially false and misleading at all relevant times or lacked a reasonable basis and omitted material facts.
On June 29, 2020, less than five years into the Schlumberger Licensing Agreement, Energy Recovery announced the termination of the Schlumberger Licensing Agreement, citing “different strategic perspectives as to the path to VorTeq commercialization.” Energy Recovery further announced that, following the termination, “no further payments will be made by either party” and that “Energy Recovery will now be fully responsible for commercialization of the VorTeq technology globally.” On this news, the price of Energy Recovery shares fell nearly 16%, damaging investors.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Energy Recovery common shares during the Class Period to seek appointment as lead plaintiff in the Energy Recovery class action lawsuit. A lead plaintiff will act on behalf of all other class members in directing the Energy Recovery class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Energy Recovery class action lawsuit. An investor’s ability to share in any potential future recovery of the Energy Recovery class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Energy Recovery class action lawsuit or have questions concerning your rights regarding the Energy Recovery class action lawsuit, please provide your information here or contact counsel, J.C. Sanchez of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at email@example.com. Lead plaintiff motions for the Energy Recovery class action lawsuit must be filed with the court no later than September 21, 2020.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.