BOSTON, May 15, 2014
BOSTON, May 15, 2014 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a Boston-based law firm representing investors nationwide, is investigating possible securities law violations by Advanced Emissions Solutions, Inc. ("AES" or the "Company") (NASDAQ: ADES) following the Company's announcement that it has uncovered a material weakness in its internal controls and that its previously issued financial results should no longer be relied upon. Specifically, the Company must correct its financial reporting of revenue recognition, affecting its publicly filed results.
On April 24, 2014, the Company revealed that it would not be able to file its Annual Report with the Securities and Exchange Commission ("SEC") for the fiscal year ended Dec 31, 2013. This news came after a March 13, 2014, announcement that the SEC was reviewing the Company's accounting practices, including its methods of recognizing revenue. In the latest news release, the Company "concluded that it has a material weakness related to its internal controls for recognizing revenue for its systems and equipment contracts in the Emissions Control business segment ("EC Contracts") and should have applied the cost to cost methodology to measure progress on the EC Contracts rather than labor hours." Additionally, the Company revealed errors in its accruals for interest expense associated with deferred taxes related to installment gains.
AES stock has fallen approximately 30% following the announcements and has recently traded below $19 per share, a collapse which has cost shareholders, in the aggregate, over $150 million.
If you purchased AES securities that have been affected by the Company's recent announcements and have any information relevant to this investigation, or you have questions about your legal rights, please contact attorney Steven P. Harte of Block & Leviton LLP at (617) 398-5600 or email him at Steven@blockesq.com. Whistleblowers are also encouraged to contact attorney Harte, and the confidentiality of all communications is assured.
Block & Leviton is a Boston-based law firm representing investors nationwide for violations of securities laws. The firm's lawyers have collectively been prosecuting securities cases on behalf of investors for over 70 years.
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BLOCK & LEVITON LLP
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Steven P. Harte, Esq.
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SOURCE Block & Leviton LLP