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PSIX Investors: Class Action Notice and Key Updates

Faruqi & Faruqi, LLP, a prominent national securities law firm, has issued a vital reminder for investors of Power Solutions International, Inc. (NASDAQ: PSIX). The firm is currently investigating potential claims against the company and has announced a significant deadline for investors wishing to assert their rights through a federal securities class action.

The deadline for potential lead plaintiffs to come forward is set for May 19, 2026. This notice is crucial for any investors who acquired shares in Power Solutions between May 8, 2025, and March 2, 2026. Those affected during this timeframe may have experienced losses due to alleged legal violations committed by the company.

Allegations Against Power Solutions International

The allegations state that Power Solutions and its executives may have violated federal securities laws by making misleading statements and failing to disclose critical information. Specifically,

1. Overstated Sales Demand: The company allegedly overestimated its capability to meet sales demand for its power systems, especially in the data center market.
2. Understated Manufacturing Costs: They are accused of underreporting the financial implications of expanding manufacturing capacity to serve this market, including significant costs related to production inefficiencies.
3. Misleading Statements: Following these failures, the positive assertions made by company executives turned out to be materially misleading, lacking a sound basis.

Significant Financial Disclosures

Recent financial results have raised concerns among investors. On November 6, 2025, Power Solutions revealed a 23.9% gross margin in its third quarter, which represented a year-over-year decline of 5%. This drop was attributed to production inefficiencies linked to a rushed ramp-up in production aimed at meeting demand for critical data center products. Moreover, the company announced a sales growth forecast of only 45% for 2025, a sharp decrease compared to the 74% growth reported in Q2 and 65% in Q3 of the same year. Following this, on November 7, 2025, the company’s stock price fell 19.14%, closing at $65.69 per share, which was part of unusually high trading volumes.

On March 2, 2026, Power Solutions again disclosed disappointing results for the fourth quarter of 2025, showing an 8% year-over-year gross margin decline due to operational inefficiencies. The company provided a cautious outlook for 2026, predicting only modest improvements in profit margins and announced ongoing efforts to enhance supply chain performance, a process it suggested was only beginning to show results.

As a result of these disclosures, shares tumbled, losing 28.97% in one day, closing at $60.91. These changes have led investors to take action, seeking to hold the company accountable.

Your Rights as an Investor

All investors holding shares within the specified dates are encouraged to consider their legal options. If you acquired Power Solutions securities during the designated timeframe, you might be eligible to join the class action lawsuit against the company. Remember, the lead plaintiff is determined as the investor with the largest financial interest who also can effectively represent the class.

Faruqi & Faruqi also welcomes anyone with pertinent information regarding the company’s conduct to contact the firm, including whistleblowers or former employees. If you wish to discuss your rights or need legal clarification, reach out directly to Josh Wilson, a senior partner of Faruqi & Faruqi, at 877-247-4292 or 212-983-9330 (Ext. 1310).

For additional information about the ongoing developments in this case or the class action process, you can visit Faruqi & Faruqi’s website.

In summary, if you are an investor in Power Solutions International impacted during the time outlined, make sure to take note of the looming deadline and your options moving forward. Legal action may provide a pathway to recovery for those who suffered losses amid the unfolding situation.