SAN DIEGO and HUNTERSVILLE, N.C., Jan. 8, 2013 /PRNewswire/ -- Shareholder rights firm Robbins Arroyo LLP is investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors of Lime Energy Co. (NASDAQ: LIME).
Robbins Arroyo LLP is investigating whether officers and directors of Lime Energy breached their fiduciary duties to shareholders by permitting and failing to correct insufficient controls and improper procedures that led to the disclosure of false and/or misleading statements.
On July 17, 2012, Lime Energy issued a press release stating that an internal investigation revealed that revenue had been improperly recorded. As a result, the company announced that it expected to restate its financial statements for the years 2010, 2011, and for the quarterly period ended March 31, 2012. Following the July 17 announcement, Lime Energy stock declined 45%, or $0.91 per share, to close at $1.12.
Then, on December 27, 2012, Lime Energy announced that the Audit Committee of the board of directors of the company determined that the company's consolidated financial statements on Form 10-K for the years ended December 31, 2008 and 2009 were also unreliable, and thus also have to be restated. As these facts continue to emerge, Lime Energy will be the focus of increasing public and legal scrutiny, while deficient internal controls will continue to threaten the company's business prospects.
Robbins Arroyo LLP highlights that Lime Energy shareholders have the option to pursue a shareholder derivative action through which shareholders aim to hold insider wrongdoers accountable for their actions, prevent future misconduct, and bring long-term value back to the company. Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to http://www.robbinsarroyo.com.
Press release link: http://www.robbinsarroyo.com/shareholders-rights-blog/lime-energy-co/
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SOURCE Robbins Arroyo LLP