Investors who bought Primoris Services Corp. shares between Aug. 5, 2025 and June 22, 2026 can seek lead plaintiff appointment by Sept. 21 in a securities fraud class action. The lawsuit alleges the contractor concealed cost overruns on fixed-price renewable energy projects.
Primoris faces a shareholder lawsuit over renewable cost overruns that erased 21.6 percent of its stock value on June 22.
"The complaint alleges that Primoris' cost estimation, cost-to-complete forecasting, and project oversight processes were deficient and failed to provide reliable estimates of the costs and expected profitability of significant fixed-price renewable energy projects," said Charles Linehan, an attorney at Glancy Prongay Wolke & Rotter LLP.
The lawsuit follows a cascade of adverse disclosures that began in February. On Feb. 23, the Dallas-based contractor reported fourth-quarter results revealing increased costs on renewable projects and margin compression in its Energy segment, sending shares down 8.3 percent to $151.92. On May 5, Primoris cut full-year adjusted EBITDA guidance to $480 million to $500 million from $560 million to $580 million and lowered adjusted EPS guidance to $4.80-$5.00 from $5.80-$6.00, triggering a 50.1 percent drop to $101.23. The stock fell another 15.4 percent on June 9 after the departure of renewables president Anthony Vorderbruggen, then dropped 21.6 percent on June 22 when the company disclosed that an internal review, supported by an independent third-party expert, had identified significant cost overruns and delays on six projects. Primoris also cut adjusted EPS guidance to $2.05-$2.60 and announced the resignation of chief operating officer Jeremy Kinch.
Investors who purchased Primoris securities during the class period have until Sept. 21 to seek appointment as lead plaintiff. The court-appointed lead plaintiff oversees litigation strategy and settlement decisions on behalf of the class. Multiple firms, including Kirby McInerney LLP, Levi & Korsinsky LLP, and The Law Offices of Frank R. Cruz, are soliciting affected shareholders. Courts regularly appoint individual investors to the lead plaintiff role, not only institutions, meaning retail holders with significant losses could shape the case's direction.
The litigation compounds operational troubles in Primoris' renewables business, which the company now expects to generate $2.1 billion to $3 billion in full-year revenue. The company attributed the shortfall to lower renewable energy activity, delayed project starts, and increased costs on fixed-price contracts, where the contractor bears the risk of soil conditions, supply chain disruptions, and schedule slippage. The case highlights the execution risk inherent in fixed-price renewable construction, where contractors absorb cost overruns that can quickly erode margins. If the class action succeeds, damages could be substantial given the stock's roughly 49 percent decline from its pre-disclosure level of about $165.64 in late February.
The Sept. 21 lead plaintiff deadline marks the next procedural milestone in the case. Investors who held PRIM shares during the class period and suffered losses should weigh whether to seek lead plaintiff status or remain absent class members, as the appointed lead plaintiff influences key decisions including litigation strategy and settlement terms.
This article is for informational purposes only and does not constitute investment advice.
