The legal action, led by the firm Hagens Berman, claims that Primoris consistently touted disciplined bidding and reliable forecasting for its renewable energy projects while simultaneously concealing severe deficiencies in oversight. According to the complaint, these internal failures led to systemic underestimation of costs and risks across multiple energy sites. The discrepancy between management's public confidence and the operational reality surfaced through a series of disclosures that crippled the company’s share price.

Confidence in the firm began to erode in February 2026, but the situation intensified on May 6, 2026, when shares plummeted 50% following a disastrous Q1 earnings report. CEO Koti Vadlamudi attributed the margin collapse to a range of execution errors, including project redesigns, labor shortages, and sequencing failures—factors that contradicted earlier assurances of effective risk management. A final blow arrived on June 22, 2026, when the company announced that revenue in its renewables business would shrink by 30% for the year. Shareholders who suffered significant losses have until September 21, 2026, to apply for the role of lead plaintiff in the ongoing litigation.