Primoris faces securities class action over renewables disclosures
A July 31 press release says a securities class action has been filed against Primoris Services Corp. and some current and former executives over alleged misstatements about project management and renewables project risks.
A securities class action has been filed against Primoris Services Corporation and certain current and former executives over alleged misstatements about project management and renewables project risks, according to a July 31 press release from Hagens Berman.
The press release ties the complaint to two selloffs in Primoris shares in May and June 2026, after disclosures that the firm says revealed project management problems and cost overruns in its renewables business.
The release says the putative class period runs from Aug. 5, 2025, through June 22, 2026, and covers investors who purchased or otherwise acquired Primoris common stock during that time. It says shares fell $101.69, or 50%, on May 6, 2026, and another $23.29, or 21%, on June 23, 2026. The release says the decline in market value between May 5 and June 23 erased well over $6 billion.
According to the release, the complaint alleges defendants repeatedly said Primoris had disciplined bidding, well-developed estimating processes, effective project controls and reliable forecasting for fixed-price renewable energy projects. The lawsuit, as described in the release, says the company instead had deficient estimating, cost-to-complete forecasting and project oversight processes, which led it to underestimate project costs and risks on several significant renewable energy projects.
The release points to several earlier disclosures. In February 2026, management attributed lower gross margins to unexpectedly higher costs on certain renewables projects and cited difficult soil and rock conditions that required more labor and equipment. On May 5, 2026, Primoris reported first-quarter results for 2026. The release says Energy segment revenue fell by $152.9 million, or 13.8%, from a year earlier, and gross profits in the segment fell by nearly 40%.
After the market closed on June 22, 2026, Primoris said additional challenges and cost overruns had been identified in its Renewables business and said six projects were affected, according to the release. It also said 2026 renewables business revenue would decline 30%, or $900 million, from $3 billion reported for 2025.
The press release quotes Reed Kathrein, a Hagens Berman partner, as saying: “We’re focused on when Primoris' management learned of the full scope of the company's renewables problems, including the apparent inadequacy of remediation measures.”
The release says Hagens Berman is continuing the investigation and lists a lead plaintiff deadline of Sept. 21, 2026. It identifies Primoris as NYSE: PRIM.
The press release says investors who bought Primoris stock during the class period may seek appointment as lead plaintiff by Sept. 21, 2026.
Sources
Editorial note: This article was prepared with AI assistance and includes source attribution for reader review.
Comments ()