PSIX Investor Alert: Power Solutions International Securities Fraud Lawsuit - Investors With Losses May Seek to Lead the Class Action After Company Allegedly Misrepresented Manufacturing Ramp-Up Costs: Levi & Korsinsky

Alert: Claims Focus on Alleged Misrepresentations About Production Ramp-Up and Supply Chain Failures

NEW YORK, April 29, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP reminds purchasers of Power Solutions International, Inc. (NASDAQ: PSIX) securities of a pending securities class action.

THE CASE: A class action seeks to recover damages for investors who purchased PSIX securities between May 8, 2025 and March 2, 2026.

YOUR OPTIONS: You may be entitled to compensation without payment of any out-of-pocket fees. See if you can recover losses or contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.

Power Solutions shares dropped $24.84, or 28.97%, to close at $60.91 on March 3, 2026, after the Company disclosed that gross margin had collapsed 8.0 percentage points year-over-year in the fourth quarter. Investors have until May 19, 2026 to seek lead plaintiff status.

The Alleged Production Ramp-Up Breakdown

An engine and power systems manufacturer cannot simply flip a switch to double production output. When Power Solutions announced it was "enhancing [its] manufacturing capacity" for the data center sector, the filing states the Company portrayed this expansion as a seamless extension of existing operations, one that would preserve the "higher-margin" profile management repeatedly touted.

As set forth in the complaint, what actually unfolded was far more costly. The accelerated production ramp-up for data center product lines generated persistent operating inefficiencies that management initially dismissed as "temporary" but that worsened quarter after quarter, dragging gross margin from 29.7% in Q1 2025 down to 21.9% by Q4 2025.

Alleged Manufacturing Inefficiency Impact by the Numbers

The lawsuit chronicles the progressive margin deterioration allegedly concealed from shareholders:

• Q1 2025 gross margin: 29.7%, presented as evidence of a successful "higher-margin" strategic pivot
• Q2 2025 gross margin: 28.2%, a 3.6 percentage point year-over-year decline attributed only to "temporary inefficiencies"
• Q3 2025 gross margin: 23.9%, a 5.0 percentage point year-over-year decline, still labeled "temporary"
• Q4 2025 gross margin: 21.9%, an 8.0 percentage point year-over-year collapse, now reclassified as "operating inefficiencies"
• Q4 2025 net income fell 31% year-over-year to $16.1 million despite a 33% increase in sales
• Only after the final disclosure did management admit it was "executing specific actions to improve supply chain performance and manufacturing cost structures"

Supply Chain Performance and Cost Structure Failures

The action claims that by March 2026, the Company conceded it needed to overhaul both supply chain performance and manufacturing cost structures, problems that went far beyond the "temporary" label applied throughout the Class Period. The complaint contends management knew or should have known that the pivot to data center products carried structural cost challenges that would erode, not enhance, profitability.

Calculate your potential recovery or call (212) 363-7500.

"The complaint raises serious questions about whether investors received accurate information regarding the true cost of Power Solutions' manufacturing expansion into data center product lines," stated Joseph E. Levi, Esq.

Levi & Korsinsky, LLP -- Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered.

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