Gilman Law LLP, a leading national law firm representing investors in securities class action lawsuits, is currently investigating securities fraud allegations against Powell Industries, Inc. (“Powell” or the “Company”) and certain of its officers and directors. If you purchased or otherwise acquired shares of Powell Industries, Inc. (NASDAQ: POWL) between May 3, 2011 and November 8, 2011 (“Class Period”), you may contact Gilman Law LLP to discuss your rights, including as to recovery of your losses or to obtain additional information about the firm’s investigation.
For over 30 years, Gilman Law has represented investors in all major aspects of securities fraud litigation, including stock manipulation, securities fraud, and shareholder rights violations. The firm is currently offering free lawsuit evaluations to Powell stockholders who purchased their shares between May 3, 2011 and November 8, 2011. We urge you to contact us today to preserve your legal rights against Powell Industries.
Powell Industries Investigation
Houston, Texas-based Powell Industries designs, manufactures and packages equipment and systems for the distribution, control, generation and management of electrical energy and other dynamic processes for large commercial customers, such as oil and gas producers. In a press release issued on November 8, 2011, Powell announced it was being forced to restate its second and third quarter 2011 earnings and cut earnings guidance in half due to accounting errors that resulted in overstated revenue and earnings for Powell Canada. Specifically, the accounting errors occurred because of inaccurate recording of customer change orders, an erroneous accounts payable journal entry, incorrect close-out of costs on certain jobs and the application of an incorrect manufacturing overhead rate.
According to the Company, the cumulative effect of these issues will cause a reduction in previously reported net income for the nine months ended June 30, 2011 of approximately $2.7 million, or $0.23 per diluted share. As a result, Powell updated its previous guidance for fiscal year 2011 and now expects full year fiscal 2011 revenues to be approximately $560 million and full year fiscal 2011 net loss to range between ($0.20) and ($0.25) per share.
In response to this news, Powell Industries shares fell more than 18% on November 8, 2011.
Legal Help for Powell Industries, Inc. Shareholders
Gilman Law LLP has extensive experience representing both individual and institutional investors in securities class action suits, and has recovered over a billion dollars for its clients. We are ready to assist investors who have sustained losses as a result of Powell Industries, Inc.’s earnings restatement. For a free evaluation of your case or to obtain additional information, please fill out the form on the left or CALL TOLL FREE (888) 252-0048.
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