NEW YORK, Jan. 23, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of all persons or entities that purchased the common stock of Energy Recovery, Inc. ("Energy Recovery" or the "Company") (Nasdaq:ERII) between March 14, 2012 through January 13, 2015, inclusive (the "Class Period"), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the "Complaint").
The Complaint alleges that during the Class Period, Energy Recovery issued materially false and misleading statements in violation of the securities laws when it failed to disclose deficiencies in its internal controls, rendering its SEC-filed reports false and misleading. On September 11, 2014, the Company announced the termination of its Senior Vice President of Sales, Borja Sanchez-Blanco after Energy Recovery learned that Mr. Blanco had engaged in conduct that created a conflict of interest and breached a duty of trust. The offending conduct occurred over the course of several years. This announcement caused Energy Recovery shares to fall $0.20, more than 4.7%, to $3.98 on September 11, 2014. The picture further darkened for investors on January 13, 2015 when the Company announced that its CEO Thomas Rooney Jr., will resign. This news caused shares to drop $0.57, more than 12.8%, to a low price of $3.87 per share on January 14, 2015.
If you wish to serve as lead plaintiff, you must move the Court no later than March 23, 2015. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at firstname.lastname@example.org or email@example.com.
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Source:Gainey McKenna& Egleston