Hagens Berman filed a securities class action against Primoris Services Corp. after shares lost over $6 billion in market value. The lawsuit covers investors who bought PRIM stock between Aug. 5, 2025 and June 22, 2026, with a lead plaintiff deadline of Sept. 21, 2026.
Primoris Services Corp. faces a securities class action after shares lost over $6 billion in market value on renewable project failures.
"We're focused on when Primoris' management learned of the full scope of the company's renewables problems, including the apparent inadequacy of remediation measures," Reed Kathrein, the Hagens Berman partner leading the firm's investigation, said.
The lawsuit seeks to represent investors who purchased Primoris common stock (NYSE: PRIM) between Aug. 5, 2025 and June 22, 2026, with a lead plaintiff deadline of Sept. 21, 2026. Shares cratered $101.69 (-50%) on May 6, 2026, after Q1 results showed Energy segment revenue fell $152.9 million (13.8%) year-over-year and gross profits plunged nearly 40%. On June 23, shares fell another $23.29 (-21%) after the company said 2026 renewables revenue would decline 30% ($900 million) from the $3 billion reported in 2025.
The complaint alleges Primoris systematically underestimated project costs and risks across multiple fixed-price renewable energy projects despite repeated assurances of "disciplined bidding" and reliable forecasting. The company's Q2 results showed a net loss of $24.2 million with adjusted EBITDA of just $11.4 million, as six troubled projects generated a $200 million negative cash flow impact.
The lawsuit, filed in the U.S. District Court for the Northern District of Texas, names the company and certain current and former executives who allegedly misled investors about project management capabilities. The case is captioned Boston Retirement System v. Primoris Services Corporation, No. 3:26-cv-02416.
During the class period, defendants repeatedly assured investors that Primoris maintained "well-developed estimating processes," effective project controls, and reliable forecasting that enabled it to accurately price and execute fixed-price renewable energy projects. The complaint alleges these assurances concealed that the company's estimating, cost-to-complete forecasting, and project oversight processes were "woefully deficient."
Investors first learned of problems in February 2026, when management attributed lower gross margins to "unexpectedly higher costs" at certain renewables projects, citing difficult soil and rock conditions. CEO Koti Vadlamudi later admitted on the May 6 earnings call that cost pressures spanned multiple solar projects, citing project redesigns, labor productivity bottlenecks, sequencing errors, and sub-surface hurdles.
The company also slashed full-year adjusted EBITDA guidance from $560-$580 million to $480-$500 million in May, and later cut its renewables revenue outlook to $2.1 billion-$3 billion for 2026. The Energy segment swung to a gross loss with segment margins at -0.3%, compared with historical double-digit norms.
Hagens Berman has secured more than $2.9 billion in this area of law. The firm also invites whistleblowers with non-public information about Primoris to contact its attorneys, noting the SEC whistleblower program offers rewards of up to 30 percent of any successful recovery.
The class action adds legal overhang to a company already facing operational challenges in its renewables business. Investors will watch for the court's lead plaintiff appointment and any further disclosures from Primoris regarding the six troubled projects ahead of the Sept. 21 deadline.
This article is for informational purposes only and does not constitute investment advice.
