Primoris faces securities class action over renewable project risk claims
A notice from Hagens Berman says a securities class action has been filed against Primoris Services Corp. and certain current and former executives over claims tied to renewables projects.
A securities class action has been filed against Primoris Services Corporation and certain current and former executives, according to a notice from Hagens Berman Sobol Shapiro LLP published Aug. 12, 2026.
The notice says the case centers on allegations that Primoris misled investors about its project management capabilities, especially in fixed-price renewable energy work. It says the proposed class period runs from Aug. 5, 2025, through June 22, 2026, and that lead plaintiff applications are due Sept. 21, 2026.
What the notice alleges
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 for renewable energy projects. The filing alleges those statements were not matched by internal controls and that the company did not disclose deficiencies in estimating, cost-to-complete forecasting and project oversight.
The notice says those alleged problems led Primoris to underestimate costs and risks on multiple significant renewable energy projects. It identifies Primoris as a company listed on the New York Stock Exchange under the ticker PRIM.
Why it matters
The notice says investors learned more about the alleged problems in stages, beginning with a February 2026 explanation for lower gross margins. In that period, management attributed higher costs on certain renewables projects to difficult soil and rock conditions that required extra labor and equipment.
The notice says management later described the issue as isolated to a single project and said it had confidence in remedial measures. It also says the company said it could accelerate project timelines in 2026.
On May 5, 2026, Primoris released first-quarter results. The notice says revenue in the core Energy segment fell $152.9 million, or 13.8%, year over year, and gross profits fell by nearly 40%.
On the May 6 earnings call, CEO Koti Vadlamudi said the company’s financial results were battered by cost pressures across multiple solar projects, according to the notice.
Context and background
The notice says Primoris disclosed after markets closed on June 22, 2026, that it had found additional challenges and cost overruns in its Renewables business. It says the company linked the issues to ongoing problems in six projects and said 2026 renewables business revenues would decline 30%, or $900 million, from the $3 billion reported for 2025.
Hagens Berman says those disclosures helped erase well over $6 billion from Primoris’ market capitalization between May 5, 2026, and June 23, 2026.
What the firm said
The notice identifies Reed Kathrein as the Hagens Berman partner leading the investigation. In the quoted material provided in the notice, Kathrein said the firm is focused on when Primoris management learned the full scope of the company’s renewables problems, including the apparent inadequacy of remediation measures.
The notice also invites investors with losses and people with relevant knowledge to contact the firm. It says SEC whistleblowers who provide original information may receive rewards of up to 30% of a successful SEC recovery.
What happens next
The notice says investors who want to seek appointment as lead plaintiff must apply by Sept. 21, 2026. It also says the litigation and any related investigation are ongoing.
Sources
Editorial note: This article was prepared with AI assistance and includes source attribution for reader review.
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