NEW YORK, Feb. 28, 2008 (PRIME NEWSWIRE) -- Roy Jacobs & Associates announces that it is investigating possible securities violations relating to today's announcement and conference call by EnerNOC, Inc. ("EnerNOC" or the "Company") (Nasdaq:ENOC), that revealed that ballooning operational and compensation expenses were outpacing revenue growth, resulting in losses greater than the market expected; and that an increasing number of ENOC forward capacity contracts involve substantial upfront costs, but a prolonged "lag" in the ability to recognize revenue. Upon announcement of this adverse news, EnerNOC's shares dropped almost 30 percent in heavy trading, wiping out over $100 million in shareholder value.
Yet, on November 1, 2007, the Company's Chairman and Chief Executive Officer, Timothy Healey told analysts that the Company's sales force was driving rapid organic revenue growth, but failed to adequately reveal expense trends, and the increasing number of "megawatts under management" that involve prolonged lags in revenue recognition. Then, on November 19, 2007, the Company and certain insiders sold 2.5 million EnerNOC shares at $43.00 per share in a secondary offering (the "Offering"). Healey sold over 64,000 of his own shares for proceeds of approximately $2.7 million, and David Brewster, the Company's President, sold approximately 140,000 of his own shares for proceeds of $6 million. In all, 2.5 million shares were sold for proceeds of over $100 million, including substantial shares sold by large investors who have representatives on EnerNOC's Board of Directors. Since the Offering, EnerNOC shares have dropped over 56 percent in value. It appears that management should have disclosed that the Company was experiencing these adverse business developments prior to the Offering.
If you purchased EnerNOC stock in the Offering which closed November 19, 2007, or in the open market from November 1, 2007 through February 26, 2008, and are interested in discussing your rights free of charge, please contact Roy L. Jacobs. Mr. Jacobs will speak with you personally at no cost or obligation.