Zeldes, Haeggquist & Eck, LLP Announces Investigation of ECOtality, Inc. (NASDAQ: ECTY)
Zeldes, Haeggquist & Eck, LLP a shareholder and consumer rights litigation firm, has commenced an investigation into ECOtality, Inc. (“ECOtality” or the “Company”) (NASDAQ: ECTY) to determine whether ECOtotality and the Company’s Officers and Directors have violated the federal securities laws or breached their fiduciary duties owed to the Company and its shareholders.
ECOtality is a San Francisco, California-based company which manufacturers and sells charging systems for electric vehicles pursuant to an agreement with the U.S. Department of Energy (“DOE”). Following quarter after quarter of reporting “record” sales and claiming the Company was successfully diversifying its business model away from the heavily-subsidized sales business through the DOE, the Company’s stock price spiraled, allowing it to stave off a delisting by the NASDAQ and to conduct an $8.2 million private placement to raise capital. Then, on August 12, 2013, the Company disclosed that the DOE had suspended all payments to the Company, had ordered the Company cease incurring new costs under is prior arrangement with DOE, and ordered it to notify all of ECOtality’s vendors of the DOE’s action. The Company also disclosed that it was unable to correct design and manufacturing defects in its charging systems, likely requiring a recall of all connector plugs on the 12,000 charging stations it had installed to date; that the Company was unable to meet its 2H 2013 release date for a new industrial charging device it had promised to release in the 2H 2013; and that as a result, it had hired a restructuring adviser to evaluate options including filing a bankruptcy “in the very near future.”
If you are an investor in ECOtality, you may have legal claims against ECOtality and/or its Officers and Directors. If you wish to discuss this investigation, or have questions about this notice or your legal rights, please contact attorney Amber L. Eck at 619-342-8000, or by email at email@example.com. There is no cost to you.