Cohen Milstein Sellers & Toll PLLC Announces the Investigation of Power Solutions International, Inc.

WASHINGTON--(BUSINESS WIRE)--

Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether Power Solutions International, Inc. ("Power Solutions" or the "Company") and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

A class action lawsuit was filed in the U.S. District Court for the Northern District of Illinois by another law firm on behalf of purchasers of the common stock of Power Solutions International, Inc. PSIX between May 8, 2015 and August 15, 2016, inclusive (the "Class Period").

The complaint alleges that Power Solutions and certain of its officers and directors ("Defendants") misrepresented and/or failed to disclose that: (1) the Company inappropriately recognized revenue for certain transactions; (2) the Company lacked adequate internal controls; and (3) as a result of the foregoing, Power Solutions' public statements were materially false and misleading.

The claims in this case followed the Company's August 15 announcement that it needed additional time to file its Form 10-Q for the quarter ended June 30, 2016 due to an ongoing internal review based on a former employee's allegations.

On May 17, 2016, the Company announced the abrupt departure of its COO, reporting that, Eric A. Cohen "will no longer serve as the Company's Chief Operating Officer effective as of the close of business May 16, 2016, and that he has left the Company." Cohen had served as the Company's COO since April 2012.

After the market close on August 10, the Company announced that it would be unable to timely file its second quarter Form 10-Q because it needed "additional time to complete its financial statements for such period," and could not provide assurances that it would be able to file by August 15, 2016, when a five-day extension period would end.

After the market close on August 15, 2016, Power Solutions filed an 8-K revealing that the delayed filing was due to an ongoing internal review into allegations made by a former employee regarding the Company's revenue recognition, stating in relevant part:

The Company has not completed its financial statements in light of an ongoing review of allegations made by a former employee. The Board and the Company take all allegations that concern its financial reporting seriously and initiated an independent review to assess whether there is any merit to them. The review is primarily focused on certain transactions involving revenue recognition. The Audit Committee and the professionals engaged by it to conduct the independent review are working diligently with management to conclude this review in a timely manner. Once the independent review is complete, the Company will announce its findings and subsequently release its results for the quarter.

The price of Power Solutions shares fell from $15.43 to $13.91 on August 16, in heavier-than-normal trading.

Cohen Milstein encourages all investors who purchased Power Solutions common stock between May 8, 2015 and August 15, 2016, or former employees with information concerning this matter to contact the firm.

If you are a Power Solutions shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein's Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at stoll@cohenmilstein.com. If you wish to serve as lead plaintiff, you must move the Court no later than October 21, 2016 to request appointment. Any member of the proposed class may retain Cohen Milstein or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member.

Cohen Milstein has significant experience in prosecuting investor class actions and actions involving securities fraud, and is active in major litigation pending in federal and state courts throughout the nation. Cohen Milstein has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total over two billion dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.

If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:

Steven J. Toll, Esq.
Robin Bleiweis
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
Suite 500 East
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
Email: stoll@cohenmilstein.com; rbleiweis@cohenmilstein.com

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