Chimicles & Tikellis LLP is investigating Advanced Emissions Solutions, Inc. (Ticker: ADES) for possible violations of the federal securities laws arising out of the Company’s statements concerning its financial reporting and internal controls between June 1, 2013 and February 2, 2015.
ADES, a Delaware corporation headquartered in Colorado, is the holding company for a family of companies that provide emissions solutions primarily to the coal-fueled power plant industry. ADES purports to be a “leader in clean coal technologies and associated specialty chemicals.” The Company derives its revenue from the sale of refined coal and from two types of “systems” – Activated Carbon Injection and Dry Sorbent Injection. Since April of 2014, the Company has made a series of curative disclosures concerning material weaknesses in its financial reporting and then on January 29, 2015 the Company made shocking disclosures that (1) KPMG resigned from its engagement to “re-audit” prior statements; (2) KPMG resigned from preparing the 2014 financial statements because it was “unwilling to be associated with the Company’s financial statements”; and (3) KPMG criticized management’s lack of forthrightness in audit process and stated that there was an “inappropriate tone at the top” that created material weaknesses in the Company’s financial reporting. On January 29, 2015, ADES also disclosed that it expected to delist from the NASDAQ since it was unable to regain reporting compliance. On this news, the stock price dropped 40%. On February 3, 2015, ADES delisted and now trades on the OTC-pink sheets.
Investors who purchased ADES on the open market between June 1, 2013 and February 2, 2015, and/ or in the Company’s November 2013 stock offering, may be affected by ADES potential wrongful conduct. During the relevant time period, ADES had a change in CUSIP from 005208103 to 00770C101.
If you purchased stock in ADES prior to February 2, 2015, please use the “Email us about this Case” button below to contact the attorneys or call us at (610) 642-8500.