SOURCE: Izard Nobel LLP

February 14, 2011 17:35 ET

Izard Nobel LLP Announces Class Action Lawsuit Against Broadwind Energy

WEST HARTFORD, CT--(Marketwire - February 14, 2011) - The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Northern District of Illinois on behalf of purchasers of the common stock of Broadwind Energy, Inc. ("Broadwind" or the "Company") (NASDAQ: BWEN) between March 17, 2009 and August 9, 2010, inclusive (the "Class Period"). 

The Complaint charges Broadwind and certain of its officers and directors violated federal securities laws by failing to disclose the following material adverse facts about the Company's true financial condition: (i) Broadwind's RBA subsidiary was experiencing significant issues with key contracts; (ii) Broadwind was materially overstating its financial condition by improperly delaying the recognition of the impairment of its goodwill and intangible assets related to its RBA subsidiary; (iii) as a result of the above, Broadwind's financial statements were not prepared in accordance with Generally Accepted Accounting Procedures; (iv) Broadwind was experiencing a reduction in demand from its customers; and (v) as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about Broadwind.

On August 9, 2010, Broadwind announced its financial results for the second quarter of 2010. For the quarter, the Company reported revenues of $36.6 million and a net loss of $14.2 million or $0.13 per share. On this news, the price of Broadwind's stock fell 12%, to close at $2.50 per share.

If you are a member of the class, you may, no later than April 12, 2011, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit: www.izardnobel.com/broadwind/, or contact Izard Nobel LLP toll-free: (800)797-5499, or by e-mail: firm@izardnobel.com. For more information about class action cases in general, please visit our website: www.izardnobel.com.

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