Investors have had enough of Ecotality, Inc., and are taking legal action. The Rosen Law Firm, PA, has filed a lawsuit on behalf of Ecotality stockholders in New York and the Law Offices of Howard G. Smith, based in Bensalem, PA, is investigating potential claims on behalf of purchasers of Ecotality's securities. Both law firms are basing their claims on potential violations of federal securities laws between April 16, 2013 and August 9, 2013.

The legal claims assert that the electric vehicle charging equipment maker has been deficient in a number of areas, including failing to meet loan obligations for the US Department of Energy's EV Project and its commitment to deliver new Minit Chargers to customers in the second half of this year. Ecotality is also allegedly liable for $855,000 in back wage and damage payments to the Department of Labor and some of its charging systems had been causing overheating and melting connector plugs while charging. Lastly, Ecotality's financial statements were allegedly false and misleading.

On August 12, Ecotality fessed up to some of its problems in a Securities and Exchange Commission 8-K filing. The company is being squeezed into exploring options that include restructuring for sale or bankruptcy. The Rosen Law Firm and the Law Offices of Howard G. Smith are both looking into filing class action lawsuits for investors against Ecotality.


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    • 1 Second Ago
  • 8 Comments
      noevfud
      • 1 Day Ago
      From day one I was wondering how long it would take for this company to fail. Crap products, poor management, no good business plan, questionable ethics, poor customer service, the list goes on. Talk about a waste of tax dollars, almost any competent company could have done the job properly for a fraction of the tax dollars they blew.
        Actionable Mango
        • 1 Day Ago
        @noevfud
        Why doesn't an established competent company do this? Why it is always some startup with no experience and short on cash? I imagine GE, Leviton, Siemens, Honeywell, etc. would have the resources and know how to do this.
          Rotation
          • 1 Day Ago
          @Actionable Mango
          aatheus: Ecotality didn't raise this money. It came from huge companies and federal grants. http://www.ecotality.com/ev-project/
          aatheus
          • 1 Day Ago
          @Actionable Mango
          Established companies are not wiling to take the massive financial risk to chase an unproven business model. It's the lean barely-funded startups that are willing to chase the wild/crazy ideas. A pity that the business management side is rarely as good as the product design and engineering sides.
      VL00
      • 1 Day Ago
      My Blink charger is a piece of junk, and I'll throw it away when it stops working
        aatheus
        • 1 Day Ago
        @VL00
        May I have it then? Some good salvageable parts inside, and the charging cable is worth something. Once I fix the badly soldered REMA connector, anyway.
      Rotation
      • 1 Day Ago
      This company is so disappointing. They have all the fast chargers around here though, I have to hope they stick around just for those. Or let someone else take them over.
        aatheus
        • 1 Day Ago
        @Rotation
        I hope that no matter what happens, the existing Blink DC fast chargers keep running. If the company has to be sold or go under, those stations need to transfer to another operator. Maybe eVGO would buy them to build out their California network...