NEW YORK, Sept. 04, 2020 (GLOBE NEWSWIRE) -- Lowey Dannenberg P.C., a preeminent law firm in obtaining redress for consumers and investors, has filed a federal securities class action in the United States District Court Southern District Of New York on behalf of its client and all similarly situated investors who purchased or otherwise acquired common stock of Energy Recovery Inc. ("Energy Recovery" or "the Company") (NASDAQ: ERII) from August 2, 2017 to June 29, 2020, inclusive (the "Class Period"). The class action alleges violations of the federal securities laws.
Energy Recovery develops and manufactures technologies for the oil & gas, chemical and water industries. Its leading technology is VorTeq hydraulic pump system. In 2015, Energy Recovery entered into a 15-year licensing agreement with Schlumberger Technology Corp. (“Schlumberger”) for the exclusive use of VorTeq. Under the terms of the licensing agreement, Schlumberger paid $75 million exclusivity fee and was to pay an additional $50 million milestone payments in 2016.
On June 29, 2020, the Company announced the termination of the licensing agreement with Schlumberger citing “different strategic perspectives as to the path to VorTeq commercialization.” Investors reacted negatively. On this news, shares of Energy Recovery fell from $8.91 to $7.59 on June 30, 2020 and fell again to $7.01 on July 1, 2020 a loss of 21.3%. As one analyst pointed out, “[Energy Recovery] should have been able to perceive in advance and then explicitly warn about the significant, and likely rising, odds of this outcome.”
The Complaint alleges that Energy Recovery made false and misleading statements to the public throughout the Class Period and failed to disclose that: (i) the Company and Schlumberger had different strategic perspectives regarding commercialization of VorTeq (ii) which created substantial risk of early termination of the Company’s exclusive licensing agreement with Schlumberger; (iii) accordingly, the revenue guidance and expectations of future license revenue was false and lacked reasonable basis; and (iv) as a result, Defendants’ public statements were materially false and misleading at all relevant times or lacked a reasonable basis and omitted material facts.
If you wish to serve as Lead Plaintiff for the Class, you must file a motion with the Court no later than September 21, 2020. Any member of the proposed Class may move to serve as the Lead Plaintiff through counsel of their choice.
If you have suffered a net loss from investment in Energy Recovery’s common stock from August 2, 2017 to June 29, 2020, you may obtain additional information about this lawsuit and your ability to become a Lead Plaintiff, by contacting Christian Levis at email@example.com or by calling 914-733-7220 or Andrea Farah at firstname.lastname@example.org or by calling 914-733-7256. The class action is titled Visser v. Energy Recovery Inc., No.1:20-cv-05647-VM (S.D.N.Y.).
Whistleblowers: Persons with non-public information about the Company should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.
About Lowey Dannenberg
Since its inception in 1967, Lowey has specialized in the prosecution of complex civil class action lawsuits and has grown into one of the most successful shareholder litigation firms in the field. Its investor litigation group has recovered billions of dollars in the aggregate and has achieved landmark, long-term corporate governance changes at public companies. Over decades of zealous advocacy, Lowey has developed a profound knowledge of securities and antitrust class action litigation.
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