The litigation, spearheaded by Hagens Berman Sobol Shapiro LLP, centers on allegations that Primoris misled shareholders regarding its project oversight and cost-forecasting capabilities. While the company previously touted disciplined bidding and effective risk management, recent financial disclosures reveal that six major renewable energy projects suffered from severe execution failures. These included labor productivity bottlenecks, sequencing errors, and costly redesigns that the firm allegedly failed to disclose during the class period.

The scale of the financial fallout became apparent in late June 2026, when Primoris projected a 30% decline in renewable revenue, effectively erasing $900 million in expected sales. This followed a dismal second quarter where the company reported a $24.2 million net loss and a revenue drop to $1.69 billion. Most notably, the Energy segment's gross margins plummeted to -0.3%, a stark departure from the double-digit margins historically reported by the firm. Reed Kathrein, the Hagens Berman partner leading the investigation, stated the firm is scrutinizing whether Primoris concealed the true severity of these operational risks from the public.