Primoris Services Corporation (PRIM) Securities Class Action Lawsuit

• Company: Primoris Services Corporation (NYSE: PRIM)
• Lead Plaintiff Deadline: September 21, 2026
• Class Period: August 5, 2025 - June 22, 2026
• Stock Drop: June 23, 2026 - PRIM fell $23.39 (21.6%) to $84.95; May 6, 2026 - PRIM declined approximately 50% to $101.23; June 9, 2026 - PRIM declined approximately 15% to $103.90; February 24, 2026 - PRIM declined approximately 8% to $151.92
• Lawsuit Type: Securities Class Action

Introduction

A securities class action lawsuit was filed on July 21, 2026, in the United States District Court for the Northern District of Texas against Primoris Services Corporation, Chairman and former Interim President and Chief Executive Officer David King, President and Chief Executive Officer Koti Vadlamudi, Chief Financial Officer Ken Dodgen, and former Chief Operating Officer Jeremy Kinch. The action is brought on behalf of a proposed class of investors who purchased or otherwise acquired Primoris common stock between August 5, 2025 and June 22, 2026, inclusive.

The lawsuit tells a story about confidence sold into complexity. Primoris, an infrastructure contractor with a major renewable energy business, allegedly assured investors that its bidding discipline, estimating systems, project controls, and cost forecasts allowed it to manage fixed-price renewable energy projects without exposing the Company to unnecessary risk on large lump sum projects.

According to the complaint, that public narrative masked a more troubled reality. Primoris allegedly suffered from deficient estimating, cost-to-complete forecasting, and project oversight processes that caused the Company to underestimate costs and risks on significant renewable energy projects. Investors bought into a picture of disciplined execution while, the lawsuit alleges, project overruns and margin pressure were building beneath the surface.

According to the complaint, the alleged truth emerged in stages. First came disclosures about increased renewable project costs and margin compression. Then came lowered guidance, leadership departures, analyst concern, and finally a June 22, 2026 business update announcing an internal review, an independent third-party industry expert, substantial challenges on six renewable energy projects, a sharp reduction in 2026 guidance, and the resignation of Chief Operating Officer Jeremy Kinch. PRIM stock fell hard as those disclosures hit the market.

Backdrop and Business Context

Primoris Services Corporation traces its operating roots to ARB, Inc., a pipeline construction company founded in 1960. The current public-company structure resulted from the 2008 combination with Rhapsody Acquisition Corp., after which the company adopted the Primoris Services Corporation name. The Company's defining strategic thread has been a shift from legacy pipeline and oil-and-gas construction toward a broader infrastructure platform spanning utilities, power delivery, communications, energy, and renewables.

Primoris is headquartered in Dallas, Texas and trades under PRIM on the NYSE. Its business is built around construction, engineering, procurement, maintenance, replacement, and infrastructure services in the United States and Canada. The Company operates primarily through Utilities and Energy segments. Utilities work includes natural gas distribution, electric transmission and distribution, and communications infrastructure. Energy work includes utility-scale solar, battery energy storage, renewable fuels, power generation, pipelines, industrial projects, and transportation infrastructure. As of December 31, 2025, Primoris reported approximately 18,500 employees.

The business model depends on contract execution. Multi-year master service agreements support recurring utility work, while large project-based contracts, including fixed-price renewable energy jobs, can carry greater estimation and performance risk. Primoris competes with large infrastructure and specialty construction peers such as Quanta Services, MasTec, and MYR Group, along with regional contractors. That fixed-price renewable energy exposure sits at the center of this Primoris Services Corporation securities class action lawsuit, because according to the complaint, the Company's ability to forecast and control costs on those projects was far weaker than investors were led to believe.

Promises Made vs. Reality

Throughout the class period, Primoris allegedly framed its renewable energy work as controlled, disciplined, and manageable. After reporting second-quarter 2025 results, the Company disclosed revenue of $1.9 billion and Adjusted EBITDA of $154.8 million, while attributing lower gross margin in part to increased costs on certain renewables projects caused by unfavorable weather. The next day, Defendant King told investors that Primoris could pursue a large volume of upcoming work without having to expose itself to "unnecessary risk on large lump sum projects," and he emphasized the Company's "focus on disciplined bidding and project execution while managing risk." Defendant Dodgen, addressing solar revenue and bookings, said the Company's increased guidance reflected "good performance and timing of execution on the jobs."

That message continued after third-quarter 2025 results. Primoris again cited increased costs on certain renewables projects due in part to weather, while raising full-year 2025 guidance. On the related earnings call, King explained that renewable project delays were tied to customer supply-chain analysis, tariffs, and the One Big Beautiful Bill, and that Primoris and its customers needed additional time "to firm up the price" before signing projects. The complaint alleges that this explanation reassured investors that pricing discipline and execution remained intact, even though the Company's estimating and oversight systems were allegedly failing to capture true project costs.

By January 2026, the Company's public assurances became more explicit. At the Goldman Sachs Energy, CleanTech & Utilities Conference, Defendant Kinch described Primoris' preferred project size as the Company's "sweet spot" and told investors that this helped Primoris "manage risk." He added that Primoris would grow only in line with its ability to execute "with surety," warning that "you can erase a lot of good work with a bad job." One week later, at the CJS Securities New Ideas for the New Year Investor Conference, Kinch characterized Primoris as careful and selective, saying the Company had "well-developed estimating processes that have held up over the test of time."

Kinch also described contract structures that supposedly allowed Primoris to understand scope before locking in fixed pricing. He told investors that once engineering reached roughly 60% and delivery times were known, the Company could provide a fixed price because "a lot of the unknowns are worked out at that point." He reinforced the same point by stating that Primoris had "the work processes in place to estimate correctly and then to go out and execute the work correctly," which he characterized as a way to mitigate risk.

Then the disclosures began to erode that narrative. On February 23, 2026, Primoris reported increased costs on certain renewable energy projects, more difficult-than-anticipated soil conditions, and Energy segment margin compression. Yet the Company still issued optimistic 2026 guidance and, on the next day's call, Defendant Vadlamudi told investors that Primoris was using tools to improve cost estimates, scheduling, productivity, and predictability. He further said the Company had worked past most excess costs and expected margins to improve in 2026. In May 2026, Primoris lowered 2026 guidance and disclosed additional renewable energy pressure, but Vadlamudi still assured investors that most affected projects were nearing substantial completion and that the Company felt "pretty good" about its risk assessment.

The final break came in June 2026. Primoris first announced the immediate departure of its President of Renewables, prompting analyst concern that the Company may not have fully scoped the problems in six solar projects. Then, on June 22, 2026, the Company announced that an internal review supported by an independent third-party industry expert had identified substantial challenges, cost overruns, and project delays affecting six renewable energy projects. Primoris slashed 2026 Adjusted EPS guidance to $2.05 to $2.60, lowered Adjusted EBITDA guidance to $275 million to $325 million, projected 2026 Renewables revenue of approximately $2.1 billion, and announced Kinch's resignation as Chief Operating Officer. As alleged in the complaint, the pattern was not isolated bad luck, but a course of misleading statements and omissions about deficient estimating, forecasting, oversight, project execution, risk management, and guidance.

Timeline of Alleged Misconduct and Disclosures

Class Period: August 5, 2025 -- June 22, 2026, inclusive.

• August 4, 2025: Primoris issued second-quarter 2025 results after market close, reporting revenue of $1.9 billion and Adjusted EBITDA of $154.8 million, while stating that lower gross margin was due in part to increased costs on certain renewables projects and unfavorable weather. The Company also filed its second-quarter 2025 Form 10-Q, which incorporated risk disclosures from its 2024 Form 10-K concerning competitive bidding, cost estimates, fixed-price contract risk, difficult worksites, and revenue recognition over time.
• August 5, 2025: Class period opened. On the earnings call, Defendant King highlighted "disciplined bidding and project execution" and said Primoris could avoid unnecessary risk on large lump-sum projects. Defendant Dodgen attributed guidance strength to good performance and job execution timing.
• November 3, 2025: Primoris issued third-quarter 2025 results and updated its full-year 2025 guidance, again referencing increased costs on certain renewables projects due in part to unfavorable weather. The Company also filed its third-quarter 2025 Form 10-Q, which incorporated substantially similar risk disclosures from its 2024 Form 10-K.
• November 4, 2025: Defendant King told investors that renewable project delays related to customer supply-chain review, tariffs, and the One Big Beautiful Bill, and that Primoris needed time to firm up project prices.
• November 10, 2025: Defendant Vadlamudi became President and Chief Executive Officer of Primoris.
• January 7, 2026: At the Goldman Sachs Energy, CleanTech & Utilities Conference, Defendant Kinch stated that Primoris managed risk by focusing on projects within its expertise and growing in line with its ability to execute.
• January 14, 2026: At the CJS Securities New Ideas for the New Year Investor Conference, Defendant Kinch described Primoris' "well-developed estimating processes" and represented that the Company had work processes to estimate and execute correctly.
• February 23, 2026: Alleged Corrective Disclosure. Primoris reported fourth-quarter and full-year 2025 results, disclosing increased costs on certain renewable energy projects, more challenging-than-anticipated soil conditions, and margin compression in the Energy segment. The Company also filed its 2025 Form 10-K, warning that fixed-price contract costs could exceed estimates and that revenue recognized over time could be reduced or eliminated if cost estimates changed.
• February 24, 2026: PRIM stock declined approximately 8%, closing at $151.92 per share. During the earnings call, Defendant Vadlamudi stated that Primoris was using tools to improve cost estimates and scheduling and expected margins to improve in 2026.
• May 5, 2026: Alleged Corrective Disclosure. Primoris reported first-quarter 2026 results, disclosed revenue and margin pressure, delayed project starts, and weaker-than-expected results, and lowered its full-year 2026 Adjusted EPS guidance from $5.80–$6.00 to $4.80–$5.00. The Company also filed its first-quarter 2026 Form 10-Q, which incorporated the risk disclosures from its 2025 Form 10-K.
• May 6, 2026: PRIM stock declined approximately 50%, closing at $101.23 per share. On the related call, Defendant Vadlamudi told investors that most affected projects were nearing substantial completion and that Primoris had addressed the issues on projects bid in 2024.
• June 8, 2026: Alleged Corrective Disclosure. Primoris announced that Anthony Vorderbruggen, President of Renewables, was departing the Company effective immediately.
• June 9, 2026: Guggenheim Securities observed that the leadership departure raised questions about Primoris' efforts to contain renewable energy problems and whether the Company had fully scoped the challenges on six solar projects. PRIM stock declined approximately 15%, closing at $103.90.
• June 22, 2026: Alleged Corrective Disclosure. Primoris issued a Business Update announcing that an internal review supported by an independent third-party industry expert had identified substantial challenges, cost overruns, and project delays affecting six renewable energy projects. The Company reduced 2026 Adjusted EPS guidance to $2.05 to $2.60, lowered Adjusted EBITDA guidance to $275 million to $325 million, projected approximately $2.1 billion in 2026 Renewables revenue, and announced Defendant Kinch's resignation.
• June 23, 2026: PRIM stock declined 21.6%, falling from $108.34 to $84.95 per share.
• June 24, 2026: After the class period, Defendants Vadlamudi and Dodgen participated in the JP Morgan Natural Resources Conference. Vadlamudi acknowledged that Primoris had conducted a deeper review of estimates to complete, that certain project risks had been underappreciated, and that the Renewables business had been slow to increase project controls, pre-construction, estimating, and project management functions.
• July 21, 2026: Plaintiffs filed the securities class action complaint in the Northern District of Texas.

Investor Harm and Market Reaction

The most significant alleged market reaction came after Primoris' June 22, 2026 Business Update. The Company disclosed that an internal review supported by an independent third-party industry expert had identified substantial challenges, cost overruns, and delays on six renewable energy projects. It sharply reduced 2026 guidance and announced the resignation of Chief Operating Officer Jeremy Kinch. On that news, PRIM fell 21.6%, from $108.34 to $84.95 per share.

The June 2026 decline followed earlier partial disclosures. On February 23, 2026, Primoris disclosed increased renewable project costs, difficult soil conditions, and Energy segment margin compression. PRIM declined approximately 8% the next trading day, closing at $151.92 per share. The complaint alleges that this was only a partial revelation because Defendants continued to issue optimistic 2026 guidance and continued to assure investors that the Company had tools, oversight, and discipline to manage the issues.

On May 5, 2026, Primoris disclosed additional adverse developments in its renewable energy business, including revenue and margin pressure, delayed project starts, weaker first-quarter results, and reduced full-year 2026 guidance. PRIM declined approximately 50%, closing at $101.23 per share on May 6, 2026. According to the lawsuit, even that disclosure did not reveal the full extent of the Company's estimating and project execution deficiencies.

A further warning sign arrived on June 8, 2026, when Primoris announced the immediate departure of its President of Renewables. Analysts recognized the significance, with Guggenheim noting that the announcement raised questions about ongoing efforts to contain problems in the renewable energy business and whether the Company had fully scoped the six solar projects. PRIM declined approximately 15%, closing at $103.90 on June 9, 2026. The complaint alleges that these stock drops caused substantial losses to investors who purchased Primoris common stock during the class period.

Litigation & Procedural Posture

The complaint asserts claims under Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 against all Defendants, and Section 20(a) control-person claims against the Individual Defendants. The alleged class consists of persons or entities that acquired Primoris common stock during the class period and were damaged.

Defendants are Primoris Services Corporation, Koti Vadlamudi (President and Chief Executive Officer from November 10, 2025), David King (Chairman and Interim President and Chief Executive Officer from March 20, 2025 to November 10, 2025), Ken Dodgen (Executive Vice President and Chief Financial Officer), and Jeremy Kinch (Chief Operations Officer through June 22, 2026). Scienter allegations center on the Individual Defendants' senior positions, alleged access to material nonpublic information about Primoris' renewable energy projects, and control over the Company's SEC filings, press releases, conference calls, and market communications. The complaint alleges that the Individual Defendants knew or recklessly disregarded that Primoris' cost estimation, cost-to-complete forecasting, and project oversight processes were deficient. No insider sales or confidential witnesses are specifically cited in the complaint.

Procedurally, the case is a newly filed putative securities class action in the United States District Court for the Northern District of Texas, Dallas Division, captioned Boston Retirement System and NS Pension Public Equity Fund v. Primoris Services Corporation, Koti Vadlamudi, David King, Ken Dodgen, and Jeremy Kinch, Civil Action No. 3:26-cv-02416. The complaint demands a jury trial, seeks class certification under Rule 23, and asks the Court to appoint Plaintiffs as Lead Plaintiff and their counsel as Lead Counsel. Lead plaintiff submissions are due September 21, 2026.

How to Check Whether You May Be Eligible for the Primoris Services Corporation (PRIM) Class Action

• Review the allegations and eligibility requirements in the pending securities class action
• Gather trade confirmations and brokerage records documenting purchases or losses
• Consult counsel regarding the lead plaintiff deadline, eligibility, and any potential rights in the litigation

Disclaimer: Attorney Advertising. This shareholder alert is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized guidance. No specific outcomes are guaranteed.