Power Solutions Investors Hit Company With Class Action Over Data Center Demand Claims

Power Solutions told investors it was tapping into booming data center demand. High growth. Higher margins. A booming future.

But behind the scenes, that story was starting to crack.

In May 2025, the company reported record results and strong demand from data centers. By August, executives doubled down, pointing to strong demand and growth tied to data centers.

Then November hit. Margins dropped to about 24%, blamed on "temporary inefficiencies." Growth expectations pointed to a sharp deceleration. The stock fell about 19% in a day.

And it got worse. In March 2026, the company admitted margins had dropped again, down about 8% year over year, tied to ongoing production problems. The stock plunged nearly 30%.

Investors were left stunned. A lawsuit alleges the company overstated demand in the data center market and downplayed the cost and impact of production inefficiencies.

Now, more investors are joining the lawsuit.