Investors Seek Lead Plaintiff Role in Power Solutions Fraud Lawsuit

Levi & Korsinsky encourages investors who lost money to apply before May 19 deadline

Mar. 30, 2026 at 8:33pm

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Levi & Korsinsky, LLP is urging investors who suffered losses in Power Solutions International, Inc. (NASDAQ: PSIX) to contact the firm, as they may be eligible to recover damages. The law firm is seeking to represent shareholders who purchased PSIX securities between May 8, 2025 and March 2, 2026, alleging the company concealed a deterioration in profit margins.

Why it matters

This case highlights the importance of timely disclosure of material information by public companies. The alleged pattern of Power Solutions downplaying margin issues raises questions about whether the severity of the problems was known internally before being communicated to shareholders.

The details

The lawsuit alleges Power Solutions initially reported strong Q1 2025 results with a 29.7% gross margin, but then saw margins slip to 28.2% in Q2 and 23.9% in Q3, which the company attributed to 'temporary inefficiencies.' An investor presentation in September 2025 continued to tout 'margin expansion opportunities' despite the declining trend. It wasn't until November 2025 and March 2026 that the full extent of the margin deterioration was disclosed, causing the stock price to plummet.

  • On May 8, 2025, Power Solutions reported Q1 2025 results with a 29.7% gross margin.
  • On August 7, 2025, Q2 2025 results showed gross margin slipping to 28.2%.
  • On September 5, 2025, the company published an investor presentation touting 'margin expansion opportunities'.
  • On November 6, 2025, Q3 2025 results revealed gross margin had dropped to 23.9%.
  • On March 2, 2026, Q4 2025 results disclosed gross margin of 21.9%.

The players

Levi & Korsinsky, LLP

A law firm that has represented shareholders in securities class actions for over two decades, ranked in the ISS Top 50 for seven consecutive years.

Power Solutions International, Inc.

A NASDAQ-listed company that manufactures power generation and distribution equipment.

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What they’re saying

“Timely disclosure of material developments is fundamental to fair and efficient markets. The chronological pattern in the Power Solutions case raises important questions about whether the severity and persistence of margin deterioration was known internally well before it was communicated to shareholders.”

— Joseph E. Levi, Attorney, Levi & Korsinsky, LLP

What’s next

The window to apply for lead plaintiff in the class action lawsuit closes on May 19, 2026.

The takeaway

This case underscores the importance of public companies being transparent about financial performance and not downplaying or concealing material issues that could impact shareholder value. Investors will be closely watching to see if Power Solutions is held accountable for the alleged disclosure failures.