NEW YORK, March 5, 2008 (PRIME NEWSWIRE) -- Roy Jacobs & Associates announces that it has commenced a Class Action lawsuit in the United States District Court for the District of Massachusetts on behalf of a class (the "Class") of all persons who purchased or acquired securities of EnerNOC, Inc. ("ENOC" or the "Company") (Nasdaq:ENOC) in the open market from November 1, 2007 through February 27, 2008, or in the Offering which closed on or about November 19, 2007 (the "Class Period").
For further information, please contact Roy L. Jacobs, Esq. toll-free at 1-888-884-4490 or by e-mail to rjacobs@jacobsclasslaw.com. You may also sign up at our website at www.jacobsclasslaw.com.
The Complaint alleges that EnerNOC presented itself throughout the Class Period as a company that was growing rapidly, and one which was able to provide services and book revenues on an almost immediate basis. At the end of the Class Period, however, EnerNOC revealed, among other things, that: (1) ballooning operational and compensation expenses were outpacing revenue growth, resulting in losses greater than the market expected; and (2) that an increasing number of EnerNOC's forward capacity contracts involve substantial upfront costs, but a prolonged "lag" in the ability to recognize revenue. Upon the announcement of this adverse news, EnerNOC's shares dropped almost 30 percent in heavy trading, wiping out over $100 million in shareholder value.
On November 1, 2007, the Company's Chairman and Chief Executive Officer, Timothy Healey, told analysts that the Company's sales force was driving rapid organic revenue growth, but failed to adequately reveal adverse expense trends, and the fact that an increasing number of "megawatts under management" involve prolonged lags in the Company's ability to recognize revenue. Then, on November 19, 2007, the Company and certain insiders sold 2.5 million EnerNOC shares at $43.00 per share in a secondary offering (the "Offering"). Healey sold over 64,000 of his own shares for proceeds of approximately $2.7 million, and David Brewster, the Company's President sold approximately 140,000 of his own shares for proceeds of $6 million. In all, 2.5 million shares were sold for proceeds of over $100 million, including substantial shares sold by large investors who have representatives on EnerNOC's Board of Directors. The Prospectus for the Secondary Offering failed to reveal the material adverse facts set forth above.
If you purchased EnerNOC shares in the Offering which closed on or about November 19, 2007, or in the open market from November 1, 2007 through February 27, 2008, and are interested in discussing your rights free of charge, please contact Roy L. Jacobs. You may qualify to serve as Lead Plaintiff on behalf of the Class. All motions for appointment as Lead Plaintiff must be filed by May 5, 2008.
You may also join this action by visiting our website at www.jacobsclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca.