Primoris Faces Class Action Lawsuit After $6 Billion Market Plunge

The litigation, spearheaded by Hagens Berman Sobol Shapiro LLP, follows a period of extreme volatility for the company. Primoris shares suffered two major selloffs in rapid succession, triggered by revelations of systemic project management failures. On May 6, 2026, the stock price plummeted 50%, followed by a 21% drop on June 23, 2026. These events collectively erased more than $6 billion from the company’s market capitalization.

The complaint contends that while management repeatedly touted “disciplined bidding” and reliable forecasting, the company’s internal oversight processes were significantly flawed. These deficiencies resulted in the systematic underestimation of costs across multiple high-stakes renewable energy contracts. Despite initial claims that issues were isolated to specific soil or rock conditions, CEO Koti Vadlamudi later disclosed a broader range of failures, including poor project sequencing, labor management issues, and costly design changes.

The situation reached a breaking point when the company admitted that ongoing challenges in its renewables segment would force a 30% reduction in revenue compared to 2025 figures. Hagens Berman is currently investigating exactly when executives became aware of these mounting problems and whether the remedial measures promised to investors were ever viable. Investors seeking to participate in the lawsuit must file by September 21, 2026.