NEW YORK, March 7, 2008 (PRIME NEWSWIRE) -- The Brualdi Law Firm P.C. announces that a class action lawsuit has been filed in the United States District Court for the District of Massachusetts against EnerNoc, Inc. (Nasdaq:ENOC). The class period is from November 1, 2007 through February 27, 2008.
No class has yet been certified in the above action. If you are a member of the proposed Class, you may, on or before May 5, 2008, ask the Court to allow you to serve as lead plaintiff for the proposed Class. To serve as a lead plaintiff, you must satisfy certain legal requirements. In making your decision, you should take into account that those with large financial losses resulting from the alleged federal securities law violations are given preference in being appointed lead plaintiff.
To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Tali Leger, Director of Shareholder Relations at The Brualdi Law Firm P.C., 29 Broadway, Suite 2400, New York, New York 10006, by telephone toll free at (877) 495-1187 or (212) 952-0602, by email to tleger@brualdilawfirm.com or visit our website at http://www.brualdilawfirm.com/
The Complaint alleges that EnerNOC presented itself throughout the Class Period as a company that was growing rapidly, and one which was able to provide services and book revenues on an almost immediate basis. At the end of the Class Period, however, EnerNOC revealed, among other things, that: (1) ballooning operational and compensation expenses were outpacing revenue growth, resulting in losses greater than the market expected; and (2) that an increasing number of EnerNOC's forward capacity contracts involve substantial upfront costs, but a prolonged "lag" in the ability to recognize revenue. Upon the announcement of this adverse news, EnerNOC's shares dropped almost 30 percent in heavy trading, wiping out over $100 million in shareholder value.
On November 1, 2007, the Company's Chairman and Chief Executive Officer, Timothy Healey, told analysts that the Company's sales force was driving rapid organic revenue growth, but failed to adequately reveal adverse expense trends, and the fact that an increasing number of "megawatts under management" involve prolonged lags in the Company's ability to recognize revenue. Then, on November 19, 2007, the Company and certain insiders sold 2.5 million EnerNOC shares at $43.00 per share in a secondary offering (the "Offering"). Healey sold over 64,000 of his own shares for proceeds of approximately $2.7 million, and David Brewster, the Company's President sold approximately 140,000 of his own shares for proceeds of $6 million. In all, 2.5 million shares were sold for proceeds of over $100 million, including substantial shares sold by large investors who have representatives on EnerNOC's Board of Directors. The Prospectus for the Secondary Offering failed to reveal the material adverse facts set forth above.