NEW YORK, Feb. 8, 2008 (PRIME NEWSWIRE) -- Roy Jacobs & Associates announces that it is investigating possible securities law violations regarding disclosures and omissions by Orion Energy Systems, Inc. ("Orion" or the "Company") (Nasdaq:OESX) concerning its Initial Public Offering ("IPO") on December 18, 2007, wherein 8.8 million shares were sold to the investing public at $13.00 per share. The investigation concerns shareholders who purchased Orion shares in the IPO or in the open market from December 18, 2007 through February 6, 2008.
Orion realized over $78 million in proceeds, while Chief Executive Officer Neal R. Verfuerth ("Verfeurth") and family sold 600,000 shares for proceeds of approximately $7 million. On February 6, 2008, just weeks after its IPO, Orion revealed news concerning the Company which completely surprised analysts and investors, and caused the stock to drop approximately 43%, to a price of $8.51 per share.
Orion is a manufacturer of efficient lighting and energy systems to businesses. The Prospectus for its IPO described a Company as quickly growing revenues from existing product lines, and briefly described product line extensions. After the close of trading on February 6, 2008, Orion revealed that revenues in its current fiscal quarter would decline as the Company took aggressive measures to promote a "new business model," a change in focus that appears not have been adequately disclosed or described in the IPO Prospectus. During the February 6, 2008 conference call, Orion executives, including Verfuerth, appeared unable to explain to the satisfaction of securities analysts this surprising news about the business model change on the heels of the IPO, or its impact on revenues.
If you purchased Orion shares in the IPO or in the open market from December 18, 2007 through February 6, 2008 and are interested in discussing your rights free of charge, please contact Roy L. Jacobs. Mr. Jacobs will speak with you personally at no cost or obligation.