The Portnoy Law Firm advises investors that a class action lawsuit has been filed on behalf of Energy Recovery, Inc. (“Energy Recovery” or “the Company”) (NASDAQ: ERII) investors that acquired securities between August 2, 2017 and June 29, 2020.
Energy Recovery develops and manufactures technologies for the oil & gas, chemical and water industries. The Company entered into a 15-year licensing agreement with Schlumberger Technology Corp. (“Schlumberger”) for the exclusive use of Energy Recovery’s VorTeq hydraulic pump system.
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.” Analysts quickly criticized the Company, stating, “[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 lawsuit 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.
Energy Recovery, Inc.
Investors that purchased the Company’s securities and have suffered a loss, please fill in transaction information below, or email to info@portnoylaw.com.
There is no cost or obligation associated with submitting your information. If you are a shareholder who suffered a loss, please submit your contact information and purchase information to participate in the putative class action.
We also encourage you to contact Lesley F. Portnoy of The Portnoy Law Firm, at 310.692.8883, to discuss your rights free of charge. You can also reach us through the firm’s website at www.portnoylaw.com, or by email at info@portnoylaw.com.
If you choose to take no action, you can remain an absent class member.
Joining the case through the Portnoy Law website enables investors to learn about their legal claims and take an active role in recovering their losses.
The Portnoy Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
CONTACT:
Portnoy Law Firm
Lesley F. Portnoy, Esq.,
www.portnoylaw.com
Office: 310.692.8883
8240 Beverly Blvd., Suite 9
Los Angeles, CA 90048
info@portnoylaw.com
