PSIX Investor Alert: Power Solutions International Securities Fraud Lawsuit - Investors With Losses May Seek to Lead the Class Action After Company Allegedly Concealed Margin Deterioration Timeline: Levi & Korsinsky
Key Dates and Disclosure Events Shareholders Need to Know
NEW YORK, March 30, 2026 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP encourages investors who suffered losses in Power Solutions International, Inc. (NASDAQ: PSIX) to contact the firm. Those who purchased PSIX securities between May 8, 2025 and March 2, 2026 may be entitled to recover damages. Find out if you are eligible to recover losses. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.
From a Class Period high of $115.78, PSIX shares ultimately plunged to $60.91 following the final corrective disclosure. The window to apply for lead plaintiff closes on May 19, 2026.
May 8, 2025: The Foundation of Optimism
The Class Period opens with Power Solutions issuing Q1 2025 results. The Company reported 42% year-over-year sales growth and a gross margin of 29.7%, up 2.7% from the prior year. The securities action alleges these results were presented alongside misleading assurances about the Company's pivot into the data center sector, framing it as a shift toward "higher growth, higher-margin markets."
August 7, 2025: First Signs of Strain
Q2 2025 results showed sales surging 74% year-over-year, but gross margin quietly slipped to 28.2%, a 3.6% decline from the prior year period. As claimed in the lawsuit, the Company attributed this contraction to "comparatively lower-margin products and temporary inefficiencies" without adequately disclosing the structural nature of the problem.
September 5, 2025: The Investor Presentation
The Company published an investor update touting "margin expansion opportunities" and the ability to use existing infrastructure to drive future growth. The action contends this presentation reinforced a misleading narrative even as margin compression was accelerating.
November 6, 2025: The First Correction
After the market closed, Q3 2025 results revealed gross margin had dropped to 23.9%, a 5.0% year-over-year decrease. The Company also disclosed anticipated full-year 2025 sales growth of only 45%, a sharp deceleration from the 74% and 65% growth reported in Q2 and Q3 respectively. PSIX fell $15.55 (19.14%) the following day on heavy volume.
March 2, 2026: The Full Picture Emerges
Q4 2025 results disclosed gross margin of 21.9%, an 8.0% year-over-year decline, and net income falling 31% compared to Q4 2024. For the first time, the Company acknowledged it was "executing specific actions to improve supply chain performance and manufacturing cost structures" and only "beginning to see measurable improvements." PSIX dropped $24.84 (28.97%) the next trading day.
Chronology of Alleged Disclosure Failures
- May 2025: Gross margin at 29.7%; Company frames data center pivot as margin-enhancing
- August 2025: Gross margin falls to 28.2%; attributed to "temporary" production issues
- September 2025: Investor presentation touts "margin expansion opportunities" despite two consecutive quarters of margin decline
- November 2025: Gross margin drops to 23.9%; growth outlook cut to 45%; stock falls 19%
- March 2026: Gross margin hits 21.9%; Company admits to structural supply chain and cost problems; stock falls 29%
Submit your claim before the deadline or call Joseph E. Levi, Esq. at (212) 363-7500.
"Timely disclosure of material developments is fundamental to fair and efficient markets. The chronological pattern in the Power Solutions case raises important questions about whether the severity and persistence of margin deterioration was known internally well before it was communicated to shareholders." -- Joseph E. Levi, Esq.
ABOUT THE FIRM -- For over two decades, Levi & Korsinsky has represented shareholders in securities class actions. Ranked in ISS Top 50 for seven consecutive years. Those wishing to serve as lead plaintiff must act by May 19, 2026.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171
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