ECOtality DC fast charger - Portland, OREnlarge Photo
Electric car charging network provider Ecotality announced Monday it had suspended trading due to "material adverse developments".
The company, which sells charging equipment and runs the Blink network of charging stations, filed an 8-K report advising of several factors preventing it from meeting ongoing obligations.
Failure to meet those obligations also saw the company lose important Department of Energy payments, but there's a larger impact for Ecotality's Blink network users: A recall of thousands of connector plugs at charging stations.
With financial troubles preventing a fix for design and manufacturing defects in its charging systems, the 12,000 charging stations it has installed to date could be rendered inoperable.
It isn't clear when this recall will occur. Shortly after Ecotality's 8-K report was filed, the company posted an "important message" on its website, for users of its services.
"We wanted you to know that the needs of our drivers are paramount to us and despite the challenges we currently face, we will continue to operate the Blink Network and maintain our Blink chargers until further notice" it reads.
"We urge you to visit a Blink charger today and show that you support the growth of a public charging infrastructure."
The company confirmed in the 8-K it was exploring options for restructuring or sale, either for the entire company or selected assets. However, things may get worse for Ecotality before they get better.
MarketWatch reports shareholder and consumer rights litigation firm Zeldes Haeggquist & Eck, LLP is currently investigating Ecotality, to determine whether the company has violated federal securities laws or breached its duties to shareholders.
More details are expected to follow in the coming days.