Hagens Berman says Primoris faces class action over renewable project risks
Hagens Berman says investors in Primoris Services Corporation may be included in a securities class action that alleges the company misled the market about project controls and renewable-energy risks.
Hagens Berman Sobol Shapiro LLP says a securities class action has been filed against Primoris Services Corporation and certain current and former executives, alleging the company misled investors about project management capabilities and renewable-energy project costs and risks.
The notice, dated Aug. 10, 2026, says investors who bought or otherwise acquired Primoris common stock between Aug. 5, 2025, and June 22, 2026, may be included. It also sets a lead plaintiff deadline of Sept. 21, 2026.
Hagens Berman says the stock fell $101.69, or 50%, on May 6, 2026, and then dropped another $23.29, or 21%, on June 23, 2026. The notice says the disclosures erased well over $6 billion in market value between May 5 and June 23.
According to the notice, the complaint says Primoris repeatedly told investors it had disciplined bidding, well-developed estimating processes, effective project controls and reliable forecasting. The filing alleges those statements were used to support confidence in the company’s ability to price and execute fixed-price renewable-energy projects, manage risk and forecast revenue, margins and earnings.
Hagens Berman says the complaint alleges Primoris failed to disclose deficient estimating, cost-to-complete forecasting and project oversight processes. The notice says that led the company to underestimate costs and risks on multiple significant renewable-energy projects.
In February 2026, management said lower gross margins reflected unexpectedly higher costs at certain renewables projects, including difficult soil and rock conditions that required extra labor and equipment. On May 5, 2026, Primoris reported first-quarter results that, according to the notice, showed Energy segment revenue down $152.9 million, or 13.8%, from a year earlier, and gross profits down nearly 40%.
The next day, CEO Koti Vadlamudi reportedly said cost pressures across multiple solar projects affected results. After market close on June 22, Primoris said additional challenges and cost overruns had been identified in its Renewables business. The notice says the company also said 2026 renewables revenue would fall 30%, or $900 million, from the $3 billion reported for 2025.
Hagens Berman partner Reed Kathrein said the firm is focused on when Primoris management learned the full scope of the renewables problems and whether the remediation measures were adequate.
The next step is the Sept. 21 lead plaintiff deadline. The notice gives investors a website, email address and phone number for Hagens Berman contact.
Sources
Editorial note: This article was prepared with AI assistance and includes source attribution for reader review.
Comments ()