Friday, March 14, 2008

EnerNOC slapped with shareholder suit

New York law firm Roy Jacobs & Associates has filed a class action lawsuit on behalf of stockholders against Boston-based energy management software maker EnerNOC Inc.

The suit, which was filed Wednesday, March 5 in the U.S. District Court for the District of Massachusetts, alleges the defendants, which include certain officers and members of EnerNOC's board of directors, "made false and misleading statements and failed to disclose material information" through public statements from Nov. 1, 2007 through Feb. 27, 2008. The time period includes a secondary public offering priced on Nov. 13, 2007, which offered 2.5 million shares at $43 per share.

EnerNOC officials say the company has "substantial legal and factual defenses," and plans to pursue those defenses.

A document released by Roy Jacobs & Associates alleges that on Nov. 1, 2007, EnerNOC CEO Timothy Healy told analysts 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."

EnerNOC, which makes energy management platforms for commercial, industrial and utilities customers, originally went public in May 2007. The company reported $60.8 million in revenue for 2007 and a net loss of $23.6 million.