The litigation centers on claims that Primoris misled shareholders about its bidding, project execution, and risk management processes while fixed-price renewable energy contracts suffered from mounting cost overruns and margin pressures. According to the complaint, these underlying issues were obscured from the market for nearly a year, culminating in a significant guidance reset.

The company's financial transparency came under scrutiny following a series of disclosures that began in early 2026. After reporting revenue and margin pressure in May, the company announced an internal review on June 22, 2026, which identified substantial execution failures across six specific renewable energy projects. The market reaction was swift, with Primoris shares dropping 21.6%—a loss of $23.39 per share—on June 23, 2026. The lawsuit contends that the company’s reliance on cost-to-cost input methods for long-term contracts meant that these project deficiencies were not accurately reflected in financial guidance, leaving investors with incomplete information regarding the firm's true exposure.