Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a
class action lawsuit in the United States District Court for the
District of Nevada on behalf of a class consisting of all persons or
entities who purchased the securities of Ormat Technologies, Inc.
("Ormat” or the "Company”) (NYSE:ORA)
between May 6, 2008 and February 24, 2010, inclusive (the "Class
Period”).
A copy of the Complaint is available from the court or from Glancy
Binkow & Goldberg LLP. Please contact us by phone to discuss this action
or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at
(888) 773-9224, by email at shareholders@glancylaw.com,
or visit our website at http://www.glancylaw.com.
The Complaint charges Ormat and certain of the Company’s executive
officers with violations of federal securities laws. Ormat and its
subsidiaries engage in the geothermal and recovered energy power
business in the United States and internationally. The Company develops,
builds, owns and operates geothermal and recovered energy-based power
plants, and sells electricity and equipment for geothermal and recovered
energy-based electricity generation. The Complaint alleges that
throughout the Class Period defendants knew or recklessly disregarded
that their public statements concerning Ormat’s business, operations and
prospects were materially false and misleading. Specifically, defendants
made false and/or misleading statements and/or failed to disclose: (1)
that the Company was improperly continuing to capitalize costs for
individual projects after Ormat had decided to abandon further
exploration and development of individual projects instead of expensing
those costs in the period in which any such determination was made; (2)
that, as a result, the Company’s financial results were overstated
during the Class Period; (3) that the Company’s financial results were
not prepared in accordance with Generally Accepted Accounting Principles
("GAAP”); (4) that the Company lacked adequate internal and financial
controls; and (5), as a result of the above, that the Company’s
financial statements were materially false and misleading at all
relevant times.
On February 24, 2010, Ormat disclosed that the Board of Directors and
Audit Committee of the Company, upon recommendation of management, had
concluded that the Company’s financial statements for the year ended
December 31, 2008 (the "2008 Financial Statements”) contained in its
Annual Report on Form 10-K for the year then ended require restatement
and should no longer be relied upon, and additionally, that the
Company’s prior related earnings and news releases and similar
communications should also no longer be relied on to the extent they
related to the 2008 Financial Statements. The Company announced that the
restatement would show a change in the Company’s accounting treatment
for certain exploration and development costs. According to Ormat, these
costs were capitalized on an area-of-interest basis using an accounting
method that is analogous to the full cost method, and upon review of
this accounting treatment in response to comment letters from the Staff
of the SEC, the Company concluded that this accounting treatment was
inappropriate in certain respects. Ormat additionally indicated that the
Company planned to revise its consolidated financial statements as of
and for the three- and nine-month periods ended September 30, 2009.
As a result of this news, Ormat shares declined $1.28 per share, or
nearly 4%, to close on February 24, 2010, at $31.90 per share, and
further declined over the following two days to close on February 26,
2010, at $28.93 per share, on heavy trading volume. Over the course of
these three days of trading, Ormat shares declined a total of 12.81%, or
$4.25 per share.
Plaintiff seeks to recover damages on behalf of class members and is
represented by Glancy Binkow & Goldberg LLP, a law firm with significant
experience in prosecuting class actions, and substantial expertise in
actions involving corporate fraud.
If you are a member of the class described above, you may move the
Court, no later than 60 days from the date of this Notice, to serve as
lead plaintiff, however, you must meet certain legal requirements. If
you wish to discuss this action or have any questions concerning this
Notice or your rights or interests with respect to these matters, please
contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801
Avenue of the Stars, Suite 311, Los Angeles, California 90067, by
telephone at (310) 201-9150 or Toll Free at (888) 773-9224, by e-mail to shareholders@glancylaw.com,
or visit our website at http://www.glancylaw.com.
