Key Takeaways:
Primoris investors face a Sept 21 deadline to lead a securities class action over renewables cost misstatements.
"We're focused on when Primoris' management learned of the full scope of the company's renewables problems, including the apparent inadequacy of remediation measures," Reed Kathrein, the Hagens Berman partner leading the firm's investigation, said.
The lawsuit, filed in the Northern District of Texas, alleges Primoris made materially false statements about its cost estimation, cost-to-complete forecasting, and project oversight for fixed-price renewable energy projects. The complaint contends the company systematically underestimated project costs and risks across multiple significant solar projects, according to the filing.
Primoris shares cratered $101.69, or 50 percent, on May 6, 2026, after the company reported Q1 results showing Energy segment revenue fell $152.9 million, or 13.8 percent, year over year, with gross profits down nearly 40 percent. Six weeks later, on June 23, shares fell another $23.29, or 21 percent, after Primoris announced cost overruns and delays across six renewable projects and cut its 2026 adjusted EPS guidance to $2.05-$2.60 from $4.80-$5.00.
"This case presents important questions about disciplined bidding and project controls disclosure obligations in the infrastructure construction sector," Joseph E. Levi, founding partner at Levi & Korsinsky, said.
The disclosures erased more than $6 billion from Primoris' market capitalization between May 5 and June 23, 2026. The company also projected 2026 renewables revenue would decline 30 percent, or $900 million, from the $3 billion reported for 2025, and announced the departure of its chief operating officer, Jeremy Kinch.
Earlier disclosures compounded the damage. On Feb 23, 2026, Primoris reported fourth-quarter results showing increased costs on certain renewable projects and margin compression, sending shares down 8.3 percent to $151.92. On June 8, the departure of the company's President of Renewables, Anthony Vorderbruggen, triggered a 15.4 percent drop to $103.90.
Investors who purchased Primoris common stock between Aug 5, 2025 and June 22, 2026, and suffered substantial losses may seek appointment as lead plaintiff. The lead plaintiff process under the Private Securities Litigation Reform Act of 1995 typically selects the investor with the largest financial interest in the relief sought.
The case is Boston Retirement System v. Primoris Services Corporation, No. 3:26-cv-02416 (N.D. Tex.). Multiple firms, including Robbins Geller Rudman & Dowd, Kessler Topaz Meltzer & Check, and Levi & Korsinsky, are soliciting investors to serve as lead plaintiff.
The outcome carries significant financial stakes for Primoris, which faces potential settlement costs and reputational damage in its renewables segment. Investors will watch for the court's lead plaintiff appointment and any subsequent guidance updates from the company.
This article is for informational purposes only and does not constitute investment advice.
