The litigation, filed in the U.S. District Court for the Northern District of Texas, centers on claims that Primoris failed to implement effective project controls while executing fixed-price contracts. Plaintiffs contend that the company’s internal estimating processes were fundamentally flawed, leading to an understatement of project expenses and an artificial inflation of reported revenue and gross profit. The complaint highlights six specific renewable energy projects where cost overruns and delays, allegedly exacerbated by poor soil conditions and unfavorable weather, were not adequately disclosed to the market.

Financial fallout from these oversight issues became apparent on June 22, 2026, when Primoris shares dropped 21.6%, or $23.39 per share, closing at $84.95. Following the announcement, the firm slashed its 2026 adjusted EPS guidance from a range of $5.80–$6.00 down to $2.05–$2.60. Adjusted EBITDA projections were similarly reduced, falling to a range of $275 million–$325 million from the previously stated $560 million–$580 million. Joseph E. Levi, of the law firm Levi & Korsinsky, argues that the sharp revision in guidance raises questions regarding the accuracy of information provided to investors throughout the class period.