#USA #Class Action #San Francisco #Hagens Berman #Primoris Services

Investors Alert: Primoris Services Corporation Faces Class Action Lawsuit Over Misleading Claims

On August 12, 2026, Hagens Berman Sobol Shapiro LLP, a prominent national shareholder rights law firm, issued an alert to investors of Primoris Services Corporation (NYSE: PRIM) regarding the filing of a securities class action lawsuit against the company. The lawsuit is aimed at current and former executives who are accused of providing misleading assurances about the company’s project management capacities. This comes in the wake of significant losses incurred by investors during the period from August 5, 2025, to June 22, 2026.

The lawsuit was provoked by a double selloff of Primoris shares just six weeks apart, with the most recent drop occurring on June 23, 2026, resulting in a steep decline of $23.29 (21%). This was preceded by a shocking $101.69 (50%) plunge on May 6, 2026. These selloffs were tied to unexpected revelations about the company’s faltering project management, which contributed to a staggering loss of more than $6 billion in market cap within that timeframe.

After repeated assurances from the company, including claims of "disciplined bidding" and reliable cost forecasting for renewable energy projects, the reality came crashing down on investors. Unbeknownst to them, Primoris had substantial deficiencies in their project oversight, escalating project costs, and managing project risks effectively.

As outlined in the lawsuit, the company’s stated claims about possessing well-developed estimating processes and effective project controls contradicted the reality of their operations. The complaint highlights a series of significant issues with estimating project costs, which led to chronic underestimations and huge financial setbacks. Investors were both blindsided and misled about the company's capabilities, resulting in significant financial fallout.

Investors initially learned about the scope of the issues through partial disclosures from company management. In February 2026, they attributed falling gross margins to higher-than-expected costs in certain renewable projects, downplaying their severity. Management later attempted to assure stakeholders that the problems were confined to a single project while expressing confidence in corrective measures being implemented.

However, this optimism was short-lived. By May 5, 2026, Primoris reported a dramatic downturn in its Energy segment, revealing a year-over-year revenue decline of $152.9 million, representing a troubling 13.8% drop. Subsequent reflections during the May 6 earnings call, hosted by CEO Koti Vadlamudi, attributed the dismal performance to various execution challenges beyond the previously mentioned geological setbacks.

These execution hurdles included:

• - Costly Project Redesigns: Making significant changes to existing plans burdens project budgets.
• - Labor Issues: Inability to effectively manage workforce demands specific to project needs.
• - Sequencing Errors: Mistimed project management leading to cascading delays.
• - Weather Disruptions: Natural elements further complicating project timelines.

Finally, on June 22, 2026, Primoris shocked investors when announcing more problematic revelations regarding cost overruns in their Renewables business. In what would be a staggering blow to their operations, the company forecasted that revenues for their 2026 renewables segment would decline by 30%, translating to a staggering $900 million drop from the previous year's figures.

As the investigation led by Hagens Berman develops, the focus is turning towards when Primoris' management fully understood the extent of the project's challenges and the insufficiency of their remediation measures. Investors suffering significant losses are being urged to submit their claims and share their experiences to assist the investigation.

This serves as a crucial reminder for investors in similar sectors to maintain vigilance and question the veracity of financial disclosures and management's assurances. Those with insights or non-public information related to these circumstances may consider utilizing the SEC Whistleblower program, potentially earning a reward for their contributions.

For more information on this investigation and to potentially join the class action, investors should visit the legal firm’s website at www.hbsslaw.com/investor-fraud/prim.

The unfolding actions surrounding Primoris Services Corporation and Hagens Berman’s investigation remain pivotal for the future of affected investors and corporate accountability at large.