Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Power Solutions International, Inc. (“Power Solutions” or the “Company”) (NASDAQ: PSIX) securities between May 8, 2025 and March 2, 2026, inclusive (the “Class Period”). Power Solutions investors have until May 19, 2026 to file a lead plaintiff motion.

IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN POWER SOLUTIONS INTERNATIONAL, INC. (PSIX), CONTACT THE LAW OFFICES OF HOWARD G. SMITH TO PARTICIPATE IN THE ONGOING SECURITIES FRAUD LAWSUIT.

Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at howardsmith@howardsmithlaw.com, by telephone at (215) 638-4847 or visit our website at www.howardsmithlaw.com.

What Happened?

On November 6, 2025, after the market closed, Power Solutions released its third quarter 2025 financial results, revealing that “gross margin in the third quarter of 2025 was 23.9%, a decrease of 5.0%” year over year due in part to “temporary inefficiencies related to our accelerated production ramp-up” for “key data center product lines.” Further, the Company revealed it “anticipates … sales growth of 45%” for full year 2025, which indicated a sharp deceleration as the Company had reported year-over-year growth of 74% in the second quarter and 65% in the third quarter 2025.

On this news, Power Solutions’ stock price fell $15.55, or 19.14%, to close at $65.69 per share on November 7, 2025, on unusually heavy trading volume.

On March 2, 2026, after the market closed, Power Solutions issued a press release announcing fourth quarter and full year 2025 financial results, revealing that gross margin declined 8% year-over-year due to “operating inefficiencies related to [the Company’s] accelerated production ramp-up for data center product lines.” Further, the Company provided its outlook for 2026, including only “moderate margin improvement from the products serving data center markets.” The press release also revealed the Company was “executing specific actions to improve supply chain performance and manufacturing cost structures” but only now “beginning to see measurable improvements, which [it] expect to build and support margin expansion over time.”

Following these disclosures, Power Solutions stock fell $24.84 or 28.97% to close at $60.91 on March 3, 2026, on unusually heavy trading volume.

What Is The Lawsuit About?

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) the Company overstated its ability to capture sales demand for its power systems solutions, particularly within the data center market; (2) the Company understated the impact of its enhancements to manufacturing capacity to meet demand within the data center market, including the expected costs and the nature of the related “inefficiencies”; and (3) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Contact Us to Participate or Learn More:

If you purchased Power Solutions securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:

Law Offices of Howard G. Smith
3070 Bristol Pike, Suite 112
Bensalem, Pennsylvania 19020
Telephone: (215) 638-4847
Email: howardsmith@howardsmithlaw.com
Visit our website at: www.howardsmithlaw.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260320042764/en/