Court Grants Final Approval for a $3.1 Million Ormat Technologies, Inc. Settlement
Bernstein Liebhard LLP is pleased to announce that after approximately two and a half years of litigation, on October 16, 2012, the Honorable Robert C. Jones of the United States District Court for the District of Nevada gave final approval to a $3.1 million settlement of the consolidated action, Szymborski v. Ormat Technologies, Inc., No. 10-CV-00132 (RCJ) (D. Nev.).
Plaintiffs alleged that Defendants made false and misleading statements concerning Ormat Technologies, Inc.’s net income by violating Generally Accepted Accounting Principles in order to conceal costs of abandoned projects. These hidden costs were later revealed when Ormat restated financial results for the fiscal year 2008 and for the third quarter of 2009. The settlement provides for the payment of $3.1 million to a class of investors who purchased Ormat securities between May 7, 2008 and February 24, 2010. Plaintiffs believe that the settlement reached was approximately 21.5% of estimated damages, which is more than four times the average recovery for similar actions according to a study by experts at Cornerstone Research.
A copy of the Court’s decision is available here.
For more information, please contact Michael S. Bigin, Esq. at (212) 779-1414.