Key Takeaways:
Primoris Services Corp. faces a securities fraud class action over alleged cost-estimation failures on renewable energy projects, after the company's guidance cut erased $23.39 per share on June 22, 2026.
"The complaint raises serious questions about whether investors received accurate information about the cost controls behind Primoris' renewable energy project portfolio," Joseph E. Levi, founding partner at Levi & Korsinsky, said. "When guidance changes this sharply after alleged estimating failures, shareholders deserve a careful review of what was known and when."
The lawsuit, filed in the US District Court for the Northern District of Texas and captioned Boston Retirement System v. Primoris Services Corporation, No. 3:26-cv-02416, covers shareholders who bought PRIM common stock between Aug. 5, 2025 and June 22, 2026. The complaint alleges Primoris understated project costs and overstated expected profitability across six fixed-price renewable energy projects, relying on a cost-to-cost input method that made reliable cost-to-complete forecasting central to reported revenue and gross profit.
Primoris cut its 2026 adjusted EPS guidance from $5.80-$6.00 to $2.05-$2.60 and slashed adjusted EBITDA guidance from $560 million-$580 million to $275 million-$325 million, citing cost overruns and delays on six projects. The stock closed at $84.95 on June 22, down 21.6 percent, after earlier declines of 8.3 percent on Feb. 24 and 50.1 percent on May 6 following successive guidance reductions. The company now expects full-year renewables revenue of $2.1 billion to $3 billion.
The case follows a pattern of escalating disclosures. Primoris first flagged increased renewable project costs in its Q4 2025 results, then cut full-year EBITDA guidance in May, then announced the departure of its renewables president on June 8, and finally revealed the six-project cost overruns on June 22. The stock has fallen roughly 70 percent from its February high of about $165.
Investors have until Sept. 21, 2026 to seek appointment as lead plaintiff, the deadline set under the Private Securities Litigation Reform Act. Lead plaintiffs are typically investors with the largest documented losses and gain direct oversight of how the case proceeds. Kessler Topaz Meltzer & Check and Levi & Korsinsky are among firms soliciting class members, with representation offered on a contingency basis.
The lawsuit creates a legal overhang that could pressure Primoris shares further while the case proceeds through discovery and potential settlement negotiations. The next catalyst is the Sept. 21 lead plaintiff deadline, which will determine which counsel directs the litigation and how aggressively the case is pursued.
This article is for informational purposes only and does not constitute investment advice.
