Powell Industries, Inc. Investor Investigation over possible Violations of Securities Laws

Nov. 28, 2011 - PRLog -- An investigation on behalf of investors in shares of C Powell Industries, Inc.  over possible Violations of Federal Securities Laws was announced.

If you purchased shares of Powell Industries, Inc. , and / or if you have any information relating the investigation including those who are former employees or/and whistleblowers, you may have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Powell Industries, Inc.  concerning whether the company, certain of its officers and directors, or others have possibly violated federal securities laws. Specifically, the investigation concerns whether certain statements regarding Powell Industries’ business, its prospects and its operations were potentially materially false and misleading at the time they were made.

Powell Industries’ 12months Revenue dropped from $665.85million ending on September 30, 2009 to $550.69million ending on Sept. 30, 2010 and its Net Income fell over the same time frame from $39.72million to $25.01million.
Shares of Powell Industries, Inc.  traded during July as high as $40.95 per share.

On November 8, 2011, Powell Industries, Inc announced that it has to restate its second and third quarter earnings. Powell Industries said that it has concluded that its previously issued consolidated financial statements for the second and third quarters of fiscal 2011 contain certain accounting errors originating from its Canadian operations and that such financial statements should no longer be relied upon. Powell Industries said the accounting errors occurred at Powell Canada as a result of inaccurate recording of customer change orders, an erroneous journal entry recorded in accounts payable, incorrect close-out of costs on certain jobs and the application of an incorrect manufacturing overhead rate, which overstated earnings in the second and third quarters. Powell Industries estimates that the cumulative effect of these issues will cause a reduction in previously reported net income for the nine months ended June 30, 2011 of approximately $2.7 million, or $0.23 per diluted share. In addition, in the fourth quarter of fiscal 2011, Powell Industries said it will record an impairment of the remaining intangible assets recorded in connection with the acquisition of Powell Canada, totaling $7.2 million, or $0.61 per diluted share.

NASDAQ- POWL shares closed on Nov. 8, 2011 at $32.94 per share and traded in after hours at $26.71 per share.

Those who purchased shares of Powell Industries, Inc. , and / or those who have any information relating the investigation including those who are former employees or/and whistleblowers, may have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

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The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We offer help, support, and assistance for every shareholder. We help investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.