Geothermal firm Ormat faces class action suit

Headline News

Law firms are circling geothermal energy company Ormat Technologies, after a class action law suit was filed accusing the firm and its executives of knowlingly falsifying its accounts.

Pennsylvania firm Howard G Smith filed the class action lawsuit on behalf of investors, after Ormat revealed back in February that it would have to revise its accounts for the year up to December 2008.

Ormat announced on February 26 that it had reviewed its accounting procedures, and decided the way it had treated costs associated with discontinued geothermal projects had been “discontinued”.

The move will see its income for 2008 downgraded by $6.2 million.

The law suit has arisen since Ormat’s admission apparently led to its share value dropping by nearly 13%. The class action alleges that Ormat and its executives were liable for investors’ losses.

A number of law firms came out over the weekend, chasing Ormat investors with the offer of representing them in the class action suit. These include the Colorado-based Shuman Law Firm, Oklahoma City firm Federman & Sherwood, Connecticut-based Izard Nobel, Dallas firm Kendall Law Group and the New York-based Brualdi Law Firm.

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