Objector Tells 7th Circ. To Upend $1.9M Engine Co. Fraud Deal

Law360 (February 13, 2020, 5:04 PM EST) -- A lower court should not have approved a $1.875 million deal to end a derivative action filed in the wake of an accounting fraud scheme at an alternative-energy engine maker without considering related criminal charges, among other issues, an objector told the Seventh Circuit on Thursday.

Former Power Solutions International Inc. executives currently face criminal and civil securities fraud charges for allegedly inflating company revenues by $25 million. That’s something the district court should have weighed, as a criminal indictment and U.S. Securities and Exchange Commission enforcement action could have bolstered the derivative claims, Albert Y. Chang of Bottini & Bottini Inc.,...

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