Power Solutions International Class Action Update
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 44 minutes ago
0mins
Should l Buy PSIX?
Source: Globenewswire
- Lawsuit Background: Power Solutions International, Inc. (NASDAQ: PSIX) faces a class action lawsuit for alleged violations of the Securities Exchange Act of 1934 during the period from May 8, 2025, to March 2, 2026, with investors having until May 19, 2026, to apply as lead plaintiffs.
- Declining Financial Performance: The Q3 2025 financial report revealed a gross margin of 23.9%, a 5.0% year-over-year decline, primarily due to temporary inefficiencies from accelerated production, indicating the company failed to capture expected sales demand in the data center market.
- Stock Price Volatility: Following the Q3 2025 report, PSIX's stock price fell over 19%, and the March 2, 2026, report showed an 8% year-over-year decline in gross margin, causing the stock to drop nearly 29%, reflecting market concerns about the company's outlook.
- Legal Process Explanation: Under the Private Securities Litigation Reform Act of 1995, any investor who purchased PSIX securities during the class period can seek to become the lead plaintiff, representing other investors in the lawsuit, highlighting investor concerns regarding corporate governance and transparency.
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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: 45.110
Low
101.51
Averages
101.51
High
101.51
Current: 45.110
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.
- Lawsuit Background: Power Solutions International, Inc. (NASDAQ: PSIX) faces a class action lawsuit for alleged violations of the Securities Exchange Act of 1934 during the period from May 8, 2025, to March 2, 2026, with investors having until May 19, 2026, to apply as lead plaintiffs.
- Declining Financial Performance: The Q3 2025 financial report revealed a gross margin of 23.9%, a 5.0% year-over-year decline, primarily due to temporary inefficiencies from accelerated production, indicating the company failed to capture expected sales demand in the data center market.
- Stock Price Volatility: Following the Q3 2025 report, PSIX's stock price fell over 19%, and the March 2, 2026, report showed an 8% year-over-year decline in gross margin, causing the stock to drop nearly 29%, reflecting market concerns about the company's outlook.
- Legal Process Explanation: Under the Private Securities Litigation Reform Act of 1995, any investor who purchased PSIX securities during the class period can seek to become the lead plaintiff, representing other investors in the lawsuit, highlighting investor concerns regarding corporate governance and transparency.
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- Class Action Filed: Pomerantz LLP has initiated a class action lawsuit against Power Solutions International, Inc., alleging securities fraud and other unlawful business practices, with investors required to apply as Lead Plaintiff by May 19, 2026.
- Declining Financial Performance: In Q3 2025, Power Solutions reported a gross margin of 23.9%, a 5.0% year-over-year decrease attributed to temporary inefficiencies from accelerated production, indicating operational challenges in key data center product lines.
- Sales Growth Slowdown: The company anticipates a 45% sales growth for 2025, a significant deceleration compared to 74% in Q2 and 65% in Q3, reflecting weakening market demand and increasing competitive pressures.
- Stock Price Volatility: Following disappointing financial results, Power Solutions' stock price fell by 19.14% to $65.69 on November 7, 2025, and dropped another 28.97% to $60.91 on March 3, 2026, indicating a substantial erosion of investor confidence.
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- Legal Claims Investigation: Faruq & Faruqi, LLP is investigating Power Solutions International, Inc. for potential claims, particularly for investors who purchased securities between May 8, 2025, and March 2, 2026, to assess their legal options.
- Investor Contact Information: Securities Litigation Partner Josh Wilson encourages affected investors to reach out directly at 877-247-4292 or 212-983-9330 (Ext. 1310) to discuss their legal rights and options.
- Class Action Deadline: Investors should note the deadline of May 19, 2026, to seek the role of lead plaintiff in a federal securities class action against Power Solutions, which is critical for potential claims.
- Company Background: Power Solutions International, Inc. (NASDAQ:PSIX) is facing legal challenges, and the investigation by Faruq & Faruqi may impact its stock price and investor confidence, prompting investors to stay informed on developments.
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- Class Action Notice: Rosen Law Firm reminds investors who purchased Power Solutions International, Inc. (NASDAQ:PSIX) securities between May 8, 2025, and March 2, 2026, that they must apply to be lead plaintiff by May 19, 2026, to participate in the class action and seek compensation.
- Fee Arrangement: Investors joining the class action will incur no upfront costs, as the law firm will operate on a contingency fee basis, ensuring that investors can pursue compensation without financial burden.
- Lawsuit Background: The lawsuit alleges that Power Solutions made false and misleading statements during the class period, particularly regarding its sales capabilities and manufacturing capacity in the data center market, resulting in investor losses when the truth emerged.
- Law Firm Advantages: Rosen Law Firm specializes in securities class actions and has achieved the largest securities class action settlement against a Chinese company, demonstrating its expertise and success rate in this field, prompting investors to carefully select experienced legal counsel.
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- Executive Change: Power Solutions International (PSIX) announced the immediate resignation of CEO Constantine Xykis, with CFO Xun Li appointed as interim CEO, highlighting challenges in executive stability within the company.
- Leadership Background: Xykis joined PSIX in 2020 as VP of Engineering and became CTO before his promotion to CEO in April 2023, bringing over 30 years of industry experience from roles at Cummins and Generac Power Systems, while Li has served as CFO since August 2022, with extensive financial management experience.
- Performance Decline: PSIX reported a significant miss on Q1 adjusted earnings and revenues, leading to a nearly 40% drop in stock price on Tuesday, primarily due to weaker oil and gas demand, and the company declined to provide full-year guidance, indicating uncertainty in market conditions.
- Market Reaction: The combination of poor performance and executive turnover has shaken investor confidence in PSIX, leading to a cautious outlook on the company's future growth prospects, which may impact its financing and business expansion capabilities.
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- Lawsuit Background: Bragar Eagel & Squire has filed a class action lawsuit against Power Solutions International in the U.S. District Court for the Northern District of Illinois on behalf of investors who purchased securities between May 8, 2025, and March 2, 2026, aiming to protect shareholder rights.
- Allegations of Misrepresentation: The lawsuit alleges that Power Solutions made false and misleading statements during the class period, failing to disclose its overstated ability to capture sales demand in the data center market and the understated costs and inefficiencies related to manufacturing capacity enhancements, misleading investors about the company's prospects.
- Investor Losses: As the true details emerged, investors suffered damages, and the lawsuit seeks compensation for affected investors, who must apply to be lead plaintiffs by May 19, 2026.
- Legal Consultation Opportunity: Bragar Eagel & Squire encourages all investors who purchased Power Solutions shares during the class period and experienced losses to contact them for more information and to discuss their legal rights, offering no-cost legal consultation services.
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