The drop of almost $10 of ENOC shares within just a few days prompted an investigation on behalf of investors in shares of EnerNOC (NASDAQ:ENOC) over possible violations of Federal Securities Laws by EnerNOC, Inc. and certain of its officers and directors.

The investigation by a law firm concerns whether EnerNOC, Inc. (Public, NASDAQ:ENOC) may have issued materially inaccurate financial statements to the investing public between October 20, 2010 and February 11, 2011.
EnerNOCs 12months Total Revenue went from $60.84million in 2007 to $280.16million in 2010. Its Net Income increased from a Net Loss of $23.58million in 2007 to a Net Income of $9.58million in 2010.

Shares of EnerNOC, Inc. (Public, NASDAQ:ENOC) traded in 2007 as high as $49.99 per share and fell to as low as $5.30 in November 08. During 2010 ENOC shares traded as high as $35.81 per share. ENOC shares fell from over $26 on Feb 1st to $16.82 on Feb 11 after a media report cited a Deutsche Bank client note concerning billing concerns. The media report said the concerns come a week after regional grid operator PJM issued a statement condemning curtailment service providers (CSPs) like EnerNOC for a practice known as double counting.
Double-counting occurs when an energy Curtailment Service Provider, such as EnerNOC, counts both a customers willingness to curtail consumption during peak hours and its registration as a capacity resource. ENOC shares fell almost $10 per share with a few days.
Deutsche Bank analyst Carter Shoop cut the price target on EnerNOC shares to $21 from $29, saying EnerNOCs potential involvement in double counting could hurt earnings. Shoop said that if the company was not involved, the company could benefit but wrote that if EnerNOC is involved in this market manipulation we believe sales and/or margins could be impacted (there are several small customers that are not adequately shedding load today that EnerNOC would have to discontinue its relationship with or more aggressively incentive to shed load).
On Feb 10 EnerNoc also disclosed that on February 5, 2011, Darren Brady, the Senior Vice President and Chief Operating Officer of EnerNOC, Inc. and the Company agreed that Mr. Brady would resign as Senior Vice President and Chief Operating Officer of the Company, effective as of the close of business on February 11, 2011.