Groowe Groowe BETA / Newsroom
⏱ News is delayed by 15 minutes. Sign in for real-time access. Sign in

INVESTOR ALERT: Kirby McInerney Files Securities Class Action Against Power Solutions International Inc.

businesswire.com
PSIX The company is facing a class action lawsuit alleging overstatement of demand capture and understatement of costs related to manufacturing enhancements. Stock price declined significantly on news of reduced gross margins and decelerating sales growth, followed by further declines on news of operating inefficiencies and only moderate margin improvement outlook.

INVESTOR ALERT: Kirby McInerney Files Securities Class Action Against Power Solutions International Inc. NEW YORK--( BUSINESS WIRE)--The law firm of Kirby McInerney LLP announces that it has filed a class action lawsuit, Dishion v. Power Solutions International Inc. et al., No. 26 Civ. 3149, in the United States District Court for the Northern District of Illinois on behalf of investors who acquired Power Solutions International Inc. (“Power Solutions” or the “Company”) (NASDAQ:PSIX) securities during the period of May 8, 2025 through March 2, 2026, inclusive (“the Class Period”).

If you suffered a loss on your Power Solutions investments, you have until May 19, 2026 to request lead plaintiff appointment. Courts do not consider lead plaintiff applications submitted after this deadline. If you choose to take no action, you may remain an absent class member. For more information about the lawsuit:

[ CONTACT THE FIRM IF YOU SUFFERED A LOSS]

What Is This Lawsuit About? The lawsuit alleges that (1) the Company overstated its ability to capture sales demand for its power systems solutions, particularly within the data center market and (2) the Company understated the impact of its enhancements to manufacturing capacity to meet demand within the data center market, including the expected costs and the nature of the related “inefficiencies.”

On November 6, 2025, Power Solutions released its third quarter 2025 financial results, revealing that “gross margin in the third quarter of 2025 was 23.9%, a decrease of 5.0%” year over year due in part to “temporary inefficiencies related to our accelerated production ramp-up” for “key data center product lines.” Further, the Company revealed it “anticipates … sales growth of 45%” for full year 2025, which indicated a sharp deceleration as the Company had reported year-over-year growth of 74% in the second quarter and 65% in the third quarter 2025. On this news, the price of Power Solutions shares declined by $15.55 per share, or approximately 19.1%, from $81.24 per share on November 6, 2025 to close at $65.69 on November 7, 2026.

On March 2, 2026, after the market closed, Power Solutions issued a press release announcing fourth quarter and full year 2025 financial results, revealing that gross margin declined 8% year-over-year due to “operating inefficiencies related to [the Company’s] accelerated production ramp-up for data center product lines.” Further, the Company provided its outlook for 2026, including only “moderate margin improvement from the products serving data center markets.” The press release also revealed the Company was “executing specific actions to improve supply chain performance and manufacturing cost structures” but only now “beginning to see measurable improvements, which [it] expect to build and support margin expansion over time.” On this news, the price of Power Solutions shares declined by $24.84 per share, or approximately 29%, from $85.75 per share on March 2, 2026 to close at $60.91 on March 3, 2026.

[ LEARN MORE ABOUT THE LAWSUIT]

The Lead Plaintiff Appointment Process. The federal securities laws permit any investor who acquired eligible securities during the class period to seek appointment as lead plaintiff in a class action lawsuit. Courts typically appoint the investor(s) with the largest financial loss in the case and the ability to represent the class rather than investors with simply the largest investment portfolio. Courts regularly appoint individual investors, whether acting alone or as a group, as lead plaintiffs. The rights of any investor who bought shares during the class period are generally already protected. However, lead plaintiffs have the power to influence case strategy and have a say in settlement decisions, as well as decisions concerning allocation of settlement funds among class members.

[ LEARN MORE ABOUT THE LEAD PLAINTIFF PROCESS]

What Should I Do? If you purchased or otherwise acquired Power Solutions securities, have information, or would like to learn more about this investigation, please contact Lauren Molinaro of Kirby McInerney LLP by email at investigations@kmllp.com, or fill out the contact form below, to discuss your rights or interests with respect to these matters at no cost.

Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.