Primoris faces securities fraud suit after shares fell 50%

A securities fraud class action was filed against Primoris Services Corporation (NYSE: PRIM) over alleged misstatements about fixed-price renewable energy project costs, with a Sept. 21 lead plaintiff deadline.

"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. "Investors were asked to rely on assurances about estimating processes while significant renewable project cost risks were not fully disclosed."

The complaint, filed in the US District Court for the Northern District of Texas, covers purchases between Aug. 5, 2025 and June 22, 2026. It alleges Primoris' cost estimation, cost-to-complete forecasting and project oversight processes were deficient, causing the company to systematically underestimate costs and risks on significant fixed-price renewable energy projects. Primoris shares fell 50.11%, or $101.69, to $101.23 on May 6 after the company cut full-year adjusted EBITDA guidance to $480-$500 million from $560-$580 million. The stock dropped another 21.6%, or $23.39, to $84.95 on June 22 after Primoris disclosed cost overruns and delays on six projects and the departure of its chief operating officer.

Earlier declines compounded the losses: shares fell 8.3%, or $13.72, to $151.92 on Feb. 24 after fourth-quarter results flagged increased renewable project costs, and dropped 15.4%, or $18.92, to $103.90 on June 9 after the president of renewables departed. The cumulative slide leaves Primoris down more than 60% from its Feb. 24 close. Investors seeking lead plaintiff status must move the court by Sept. 21, 2026; the lead plaintiff typically holds the largest financial interest and selects class counsel. The case is captioned Boston Retirement System v. Primoris Services Corporation, No. 3:26-cv-02416.

The suit adds legal exposure to a company already navigating operational strain in its renewables business, which Primoris now expects to generate $2.1 billion to $3 billion in full-year revenue. Investors will watch whether the company revises its outlook again when it reports second-quarter results, and whether additional projects face similar cost overruns.

This article is for informational purposes only and does not constitute investment advice.