Ocean Power Technologies Faces Lawsuit
Glancy Binkow & Goldberg LLP, representing investors of Ocean Power Technologies, Inc., has filed a class action lawsuit in the United States District Court for the District of New Jersey on behalf of a class comprising all purchasers of Ocean Power Technologies securities between January 14, 2014 and June 9, 2014, inclusive.
Ocean Power Technologies engages in the development and commercialization of proprietary systems that generate electricity by harnessing the renewable energy of ocean waves, primarily in the United States, Europe, Asia and Australia. The Complaint alleges that defendants may have misstated the nature and/or circumstances of an agreement between the Australian Renewable Energy Agency and Victorian Wave Partners Pty Ltd − a project-specific operating entity wholly-owned by the Company’s subsidiary − related to a planned wave power station project off the coast of Australia. As a result, defendants’ statements concerning the Victorian Wave Partners project, and positive statements about Ocean Power’s business, operations and prospects, were materially false and misleading or lacked a reasonable basis
On June 10, 2014, the Company disclosed that on June 9, 2014, Charles F. Dunleavy was terminated as the chief executive officer of Ocean Power Technologies. The Company also disclosed that the board of directors appointed a Special Committee, composed of outside directors and the interim chief executive officer, which will retain outside counsel to assist in an investigation into the agreement between Victorian Wave Partners and the Australian Renewable Energy Agency, and related public statements concerning the project. Following this news, the price of Ocean Power Technologies shares dropped approximately 34%, to close on June 10, 2014, at $1.63 per share, on unusually heavy volume.
Few other law firms, including Kirby McInerney LLP and Law Offices of Howard G. Smith, also said they are looking into this matter on behalf of OPT shareholders.