Power Solutions Faces Class Action Lawsuit from Investors
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 13 2026
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Should l Buy PSIX?
Source: Globenewswire
- Lawsuit Background: Berger Montague PC has filed a class action lawsuit against Power Solutions International on behalf of investors who purchased shares between May 8, 2025, and March 2, 2026, alleging false statements regarding sales demand and production capacity.
- Stock Price Volatility: On November 6, 2025, Power Solutions disclosed a 19% decline in gross margin, leading to a significant drop in stock price as investors became aware of the company's production efficiency issues in the data center market.
- Further Deterioration: On March 2, 2026, Power Solutions reported additional margin deterioration, acknowledging that improvements in manufacturing efficiency and supply chain performance were just beginning, resulting in a further 29% drop in stock price.
- Investor Rights: Investors must apply by May 19, 2026, to be appointed as lead plaintiff representatives in the class action, highlighting concerns over the company's financial transparency and management capabilities.
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Analyst Views on PSIX
Wall Street analysts forecast PSIX stock price to rise
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 70.500
Low
101.51
Averages
101.51
High
101.51
Current: 70.500
Low
101.51
Averages
101.51
High
101.51
About PSIX
Power Solutions International, Inc. designs, engineers, and manufactures a broad range of advanced, emission-certified engines, power systems, and accessories. It provides integrated turnkey solutions to global original equipment manufacturers and end-user customers. It develops and delivers complete power systems that are used worldwide in stationery and mobile power generation applications supporting standby, prime, demand response and microgrid solutions, as well as products and packages supporting the rapidly growing data center markets. Its industrial segment provides engine and battery powertrain solutions to serve applications such as forklifts, agricultural and turf, arbor care, industrial sweepers, aerial lifts, irrigation pumps, ground support, construction equipment. Its transportation segment provides engine powertrain solutions to specialized applications such as terminal tractors, port equipment, military vehicles, and other non-road vocational vehicles.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Class Action Initiated: Berger Montague law firm has filed a class action lawsuit against Power Solutions International on behalf of investors who purchased shares between May 8, 2025, and March 2, 2026, indicating significant investor dissatisfaction with the company's financial transparency.
- False Statements Exposed: The lawsuit alleges that Power Solutions made materially false and misleading statements regarding its sales capabilities in the data center market and failed to adequately disclose the costs and inefficiencies related to its manufacturing capacity enhancements, leading to a loss of investor confidence.
- Stock Price Volatility: On November 6, 2025, Power Solutions disclosed a year-over-year gross margin decline, resulting in a 19% drop in stock price in a single day, reflecting the market's strong reaction to the company's production efficiency issues and exacerbating investor panic.
- Ongoing Financial Deterioration: On March 2, 2026, Power Solutions reported further margin deterioration and acknowledged that improvements in manufacturing efficiency and supply chain performance were just beginning to materialize, causing the stock price to fall another 29%, highlighting the severe financial challenges facing the company.
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- Gartner Lawsuit Overview: Gartner, Inc. (NYSE:IT) faces a class action lawsuit for the period from February 4, 2025, to February 2, 2026, alleging that the company misled investors about its ability to meet consulting revenue targets, with a lead plaintiff deadline of May 18, 2026.
- Power Solutions Lawsuit Details: Power Solutions International, Inc. (NASDAQ:PSIX) is under scrutiny in a class action from May 8, 2025, to March 2, 2026, for overstating its sales capabilities in the data center market, with a lead plaintiff deadline of May 19, 2026, impacting investors negatively.
- Gemini Lawsuit Information: Gemini Space Station, Inc. (NASDAQ:GEMI) is involved in a class action for the period from September 12, 2025, to February 17, 2026, accused of overstating its core business viability as a crypto platform, with a lead plaintiff deadline of May 18, 2026, raising concerns about potential restructuring risks for investors.
- Hercules Lawsuit Background: Hercules Capital, Inc. (NYSE:HTGC) faces a class action lawsuit for the period from May 1, 2025, to February 27, 2026, alleging significant errors in due diligence and portfolio valuation, with a lead plaintiff deadline of May 19, 2026, posing risks of overvalued assets for investors.
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- Class Action Notification: The Schall Law Firm reminds investors of a class action lawsuit against Power Solutions International, Inc. for violations of §§10(b) and 20(a) of the Securities Exchange Act, concerning securities purchased between May 8, 2025, and March 2, 2026.
- False Statement Allegations: The complaint alleges that Power Solutions misled investors regarding its ability to secure business in the data center market while downplaying the impact of manufacturing enhancements, including costs and inefficiencies.
- Loss Recovery Opportunity: Investors are encouraged to contact the Schall Law Firm before May 19, 2026, to participate in the lawsuit and seek compensation for losses, highlighting significant deficiencies in the company's disclosures.
- Legal Representation Status: The class action has not yet been certified, meaning investors are not represented by an attorney until certification occurs, and those who choose not to act will remain absent class members.
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- Shareholder Investigation Initiated: Grabar Law Office is investigating whether LKQ Corporation's executives breached their fiduciary duties, affecting shareholders who purchased shares before February 27, 2023, potentially leading to legal liabilities and financial losses for the company.
- Inadequate Disclosure of Acquisition Risks: LKQ allegedly failed to disclose that FinishMaster was losing major customers prior to the acquisition, severely undermining investor confidence in the company's financial health and potentially impacting future financing capabilities.
- Significant Financial Guidance Cuts: LKQ has cut its financial guidance multiple times between April 2024 and July 2025 due to missed revenue and margin targets, highlighting the company's vulnerability in a competitive market, which may lead to further declines in stock price.
- Potential Legal Consequences Increase: As the investigation progresses, LKQ may face class action lawsuits from shareholders seeking corporate reforms and fund recovery, which could have long-term repercussions on the company's reputation and market trust.
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- Investor Investigation Launched: Grabar Law Office is investigating LKQ Corporation for potential breaches of fiduciary duties by its executives, allowing investors who purchased shares before February 27, 2023, to seek corporate reforms and fund recovery.
- Acquisition Risk Disclosure Failure: Allegations against LKQ regarding its $2.1 billion acquisition of Uni-Select claim that executives failed to disclose that FinishMaster was losing major customers prior to the acquisition, severely undermining investor confidence in the company's financial health.
- Significant Financial Guidance Cuts: Between April 2024 and July 2025, LKQ cut its financial guidance multiple times, admitting that FinishMaster had been losing customers before the acquisition, indicating ongoing market share losses due to competitive pressures and revealing the company's vulnerable market position.
- Potential Legal Consequences: Investors can participate in a class action lawsuit for compensation; if LKQ fails to adequately address these allegations, it may face greater legal and financial risks, impacting its future market performance and investor confidence.
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- Shareholder Investigation Launched: Grabar Law Office is investigating LKQ Corporation for potential breaches of fiduciary duties by its executives, allowing investors who purchased shares before February 27, 2023, to seek corporate reforms and fund recovery.
- Inadequate Risk Disclosure: LKQ allegedly misled investors regarding its $2.1 billion acquisition of Uni-Select, failing to disclose that FinishMaster was losing major customers, which distorted perceptions of the company's financial health and eroded market confidence.
- Significant Financial Guidance Cuts: Between April 2024 and July 2025, LKQ repeatedly lowered its financial guidance, admitting that FinishMaster had been losing customers prior to the acquisition, highlighting the competitive pressures the company faces.
- Potential Legal Consequences: Due to the failure to disclose critical information in a timely manner, LKQ may face class action lawsuits, with investors encouraged to participate through Grabar Law Office to seek legal remedies and compensation.
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