The Murphy Law Firm announces that it is investigating potential claims against Ormat Technologies, Inc. (“Ormat” or the “Company”) (NYSE:ORA) on behalf of ORA purchasers concerning possible securities violations related to the Company’s public statements regarding its financial performance.
Ormat designs, develops, owns and operates geothermal and recovered energy-based power plants around the world. Additionally, the Company designs, manufactures and sells geothermal and recovered energy power units and other power-generating equipment, and provides related services.
Attorney Bruce Murphy said that the investigation concerns Ormat’s February 24, 2010, announcement that the Company’s financial statements contained in its Annual Report on Form 10-K for the year ended December 31, 2008, require restatement and should no longer be relied upon.
According to the announcement, through the third quarter of 2009 the Company accounted for exploration and development costs using an accounting method that was inappropriate in certain respects. The impact of the restatement is a decrease of approximately $6.2 million in net income, or $0.14 per share, during the year end and fourth quarter ended December 31, 2008, representing a reduction of 12.6% from its originally reported net income of $49.5 million in 2008 and a reduction of 53.6% from its originally reported net income of $11.6 million in the fourth quarter of 2008.