HARTFORD, Conn., Feb. 11, 2008 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of all persons who purchased the common stock of Orion Energy Systems, Inc. ("Orion" or the "Company") (Nasdaq:OESX) between December 18, 2007 through February 6, 2008, inclusive (the "Class Period").
The Complaint charges that Orion and certain of its officers, directors and underwriters violated federal securities laws by issuing a Registration Statement and Prospectus in connection with Orion's initial public offering ("IPO") which contained materially false statements and omitted material facts. Orion is a manufacturer of efficient lighting and energy systems to businesses. The Prospectus for its IPO described a Company that was quickly growing revenues from existing product lines, and briefly described product line extensions. After the close of trading on February 6, 2008, just weeks after its IPO, Orion revealed that revenues in its current fiscal quarter would decline as the Company took aggressive measures to promote a "new business model," a change in focus that is alleged not to have been adequately disclosed or described in the IPO Prospectus. During a February 6, 2008 conference call, Orion executives, including Chief Executive Officer Neal R. Verfuerth ("Verfuerth"), appeared unable to explain to the satisfaction of securities analysts this surprising news about the business model change on the heels of the IPO, or its impact on revenues. Orion realized over $78 million in proceeds from the IPO while Verfuerth and his family sold 600,000 shares for proceeds of approximately $7 million.
If you are a member of the class, you may, no later than April 11, 2008, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard P.C. has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.