The lawsuit, filed by Hagens Berman Sobol Shapiro LLP, targets Primoris and several current and former executives following two massive selloffs that erased over $6 billion in market capitalization. While leadership repeatedly touted "disciplined bidding" and effective project controls, the complaint contends that internal oversight processes were systematically deficient, leading to chronic underestimation of costs on major energy projects.

Confidence in the company collapsed in 2026 after a series of disclosures. Following a May 6 stock crash of 50%, CEO Koti Vadlamudi acknowledged that cost pressures, labor shortages, and sequencing errors had battered financial results. The situation worsened on June 22, when Primoris revealed that ongoing project challenges would force a 30% revenue decline in its renewables business for the year. Reed Kathrein, the partner leading the investigation, stated the firm is now focusing on exactly when management became aware of the full scope of these operational failures and the inadequacy of their remedial measures.