Gilman Law LLP Announces Investigation into Powell Industries, Inc.
Gilman Law LLP, a leading national securities law firm, is actively investigating potential violations of the federal securities laws by Powell Industries, Inc. (“Powell Industries” or the “Company”) and certain of its officers and directors, by issuing false and misleading information concerning the Company’s overall operational and financial condition. Headquartered in Houston, Texas, 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.
On November 8, 2011, Powell Industries issued a press release announcing that due to accounting errors resulting in overstated revenue and earnings at their Canadian operations, Powell Canada, the Company will have to restate its second and third quarter 2011 earnings and cut earnings guidance in half. 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.
In response to this news, Powell Industries shares fell more than 18% on November 8, 2011.
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.
Gilman Law has extensive experience representing both individual and institutional investors in securities class action suits and can help you recover any losses that you have incurred as a result of Powell Industries’ fraudulent practices.