Energy Recovery Investors Last Days to Seek Active Participation in Class action
September 17, 2020 at 08:00 AM EDT
Investors with losses of $100,000 or more are encouraged to contact the Portnoy Law Firm; click here to join the case
LOS ANGELES, Sept. 17, 2020 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises investors that a class action lawsuit has been filed on behalf of Energy Recovery, Inc. ("Energy Recovery" or "the Company") (NASDAQ: ERII) investors that acquired securities between August 2, 2017 and June 29, 2020. Investors have until September 21, 2020 to seek appointment as a class representative.
Energy Recovery develops and manufactures technologies for the oil & gas, chemical and water industries. The Company entered into a 15-year licensing agreement with Schlumberger Technology Corp. (“Schlumberger”) for the exclusive use of Energy Recovery’s VorTeq hydraulic pump system.
On June 29, 2020, the Company announced the termination of the licensing agreement with Schlumberger citing “different strategic perspectives as to the path to VorTeq commercialization.” Analysts quickly criticized the Company, stating, “[Energy Recovery] should have been able to perceive in advance and then explicitly warn about the significant, and likely rising, odds of this outcome.”
The lawsuit alleges that Energy Recovery made false and misleading statements to the public throughout the Class Period and failed to disclose that: (i) the Company and Schlumberger had different strategic perspectives regarding commercialization of VorTeq (ii) which created substantial risk of early termination of the Company’s exclusive licensing agreement with Schlumberger; (iii) accordingly, the revenue guidance and expectations of future license revenue was false and lacked reasonable basis; and (iv) as a result, Defendants’ public statements were materially false and misleading at all relevant times or lacked a reasonable basis and omitted material facts.
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