PSIX Investor Alert: Power Solutions International Securities Fraud Lawsuit - Investors With Losses May Seek to Lead the Class Action After Company Allegedly Concealed Margin Erosion: Levi & Korsinsky

Critical Information: $24.84 Per-Share Loss Quantifies Alleged Investor Damages

NEW YORK, May 6, 2026 /PRNewswire/ -- From a Class Period high of $85.75 on March 2, 2026, Power Solutions International, Inc. (NASDAQ: PSIX) shares collapsed to $60.91, a decline of $24.84 per share, or nearly 29%, in a single trading session on unusually heavy volume. Levi & Korsinsky, LLP notifies investors who purchased PSIX securities between May 8, 2025 and March 2, 2026 that a securities class action has been filed. Find out if you qualify to recover your per-share losses. You may also contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.

The lead plaintiff deadline is May 19, 2026. Gross margin deteriorated from 29.7% in Q1 2025 to 21.9% by Q4 2025, an 8-percentage-point erosion that the lawsuit contends was foreseeable and inadequately disclosed to shareholders.

How the Market Repriced PSIX After Concealed Risks Surfaced

The market's repricing of PSIX shares occurred across two corrective events. On November 7, 2025, following Q3 results that revealed a 5.0% year-over-year gross margin decline and a downward revision of annual sales growth expectations to 45%, shares fell $15.55, or 19.14%, closing at $65.69 on heavy volume. This first correction removed a portion of the artificial inflation that the complaint alleges had been sustained by management's repeated characterization of margin pressure as merely "temporary."

The second and larger correction came on March 3, 2026, when Q4 results disclosed an 8% year-over-year gross margin collapse and an outlook limited to only "moderate margin improvement." The filing states that the Company simultaneously revealed it was only now "executing specific actions to improve supply chain performance and manufacturing cost structures," suggesting these problems had persisted far longer than investors were led to believe. Shares shed $24.84, or 28.97%, in a single session.

The Alleged Artificial Inflation and Its Removal

The lawsuit maintains that PSIX securities traded at artificially inflated prices throughout the Class Period because:

• Management touted a pivot to "higher growth, higher-margin markets" while gross margins declined every consecutive quarter from 29.7% to 21.9%
• The Company characterized production challenges as "temporary inefficiencies" through multiple quarterly reports, even as the problems worsened
• Sales growth decelerated sharply from 74% (Q2) to 65% (Q3) to 33% (Q4), contradicting the narrative of accelerating data center demand
• The full scope of supply chain failures and manufacturing cost structure problems was not disclosed until the final corrective event

Join the PSIX recovery action or call (212) 363-7500.

"When companies fail to disclose material information, shareholders may suffer significant losses. The magnitude of the market's reaction to each corrective disclosure in this case suggests that investors were deprived of information material to their investment decisions," -- Joseph E. Levi, Esq.

ABOUT LEVI & KORSINSKY, LLP -- Over the past 20 years, Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders. The firm has extensive expertise in complex securities litigation and a team of over 70 employees. For seven consecutive years, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171

SOURCE Levi & Korsinsky, LLP