Pension funds sue Primoris, allege it hid solar cost overruns from investors

Two institutional investors are suing infrastructure company Primoris, alleging it misled investors about cost problems in its renewable energy business before the stock fell sharply. 

Boston Retirement System and NS Pension Public Equity Fund filed the proposed class action on July 21, 2026, in the US District Court for the Northern District of Texas. According to the complaint, they are suing on behalf of everyone who bought Primoris common stock between August 5, 2025 and June 22, 2026. The claims are brought under Sections 10(b) and 20(a) of the Securities Exchange Act, the federal provisions that allow investors to sue over statements they allege were false or misleading. 

The setup matters. Primoris builds large energy and infrastructure projects, and the complaint says much of its renewable work runs on fixed-price contracts, where the company agrees to a set price and bears the risk if costs run over. On that model, the filing notes, profitability depends on estimating costs accurately. That, the complaint alleges, is where the problem lay. 

According to the filing, Primoris told investors it maintained "disciplined bidding," "well-developed estimating processes," and reliable cost forecasting, while its estimating and project oversight were in fact deficient. As a result, the complaint alleges, the company "systematically underestimated" the costs and risks of significant fixed-price renewable energy projects that were experiencing cost overruns, execution problems, and schedule delays. 

The complaint describes a gradual disclosure rather than a single event. It alleges the situation emerged through a series of disclosures between February 23, 2026 and June 22, 2026, with company executives continuing to reassure investors along the way. At a January 2026 investor conference, according to the filing, the company's then-chief operating officer described its "well-developed estimating processes that have held up over the test of time." 

The complaint then traces the market reaction it attributes to these disclosures. It alleges Primoris cut its 2026 financial guidance more than once. Following a May 5, 2026 disclosure, the filing states the stock declined approximately 50%, closing at $101.23 on May 6, 2026. When the company issued a June 22, 2026 business update citing cost overruns and delays on six renewable energy projects, and announcing the resignation of its chief operating officer, the complaint states the stock declined approximately 22%, closing at $84.95 on June 23, 2026. 

The filing also points to statements it characterizes as later acknowledgments. It quotes the company's chief executive, at a June 24, 2026 conference, saying there was "probably a little bit of risk/reward balance that was underappreciated" on the six projects. The complaint also cites his statement that the renewables unit was "slow to increase functions like project controls, pre-construction, estimating, [and] project management" as it grew. 

For advisors and wealth firms, the interest is less about Primoris than about the pattern the complaint describes. It alleges that upbeat guidance and confident conference-call language became the basis of a securities claim once results disappointed. The plaintiffs are institutional investors - a public pension system and a public equity fund - and the filing is an example of how alleged estimation problems can surface as a securities action. For anyone holding or recommending companies with heavy fixed-price contract exposure, the case is worth following. 

The complaint seeks damages for the proposed class, along with interest, costs, and legal fees, and demands a jury trial. 

The allegations have not been tested in court, and no judge has ruled on the claims.