NEW YORK, April 24, 2014 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Advanced Emissions Solutions, Inc. ("Advanced Emission" or the "Company") (NasdaqCM: ADES) (CUSIP: 00770C101). Investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 237.
The investigation concerns whether Advanced Emissions and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
On March 13, 2014, the Company announced in a Securities and Exchange Commission ("SEC") Form 8-K filing that, "the Company is currently reviewing its accounting practices, particularly its methods of recognizing revenue for its Emission Control business segment contracts. The Company expects the result of this review will likely result in increased operating losses, primarily driven by a reduction of revenues and margins for its emission control segment with a corresponding increase in backlog for the same period."
On this news, shares of Advanced Emissions fell from $54.23 to $50.90, on March 13, 2014, on unusually heavy trading volume.
On April, 24, 2014, the Company "announced that it is continuing with its extensive accounting review and at this time is unable to file its Annual Report on Form 10-K for the fiscal year ended Dec 31, 2013. The company has concluded that it has a material weakness related to its internal controls for recognizing revenue for its systems and equipment contracts in the Emissions Control business segment and should have applied the cost to cost methodology to measure progress on the EC Contracts rather than labor hours. In addition, the company has identified errors in its accruals, the most significant of which was for interest expense associated with Internal Revenue Code Section 453A interest on deferred taxes related to installment gains. The company has identified significant deficiencies in its controls over financial reporting that may result in additional material weaknesses."
On this news, shares of Advanced Emissions fell $1.66, or more than 6%, on intraday trading to $22.32, on unusually heavy trading volume.
The Pomerantz Firm, with offices in New York, Chicago, San Diego, and Florida, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
SOURCE Pomerantz LLP