Ocean Power Technologies, Inc. (NASDAQ: OPTT) has just reached a crush depth alert on news that it has fired its CEO, who is also Chairman, for cause. Shares were halted most of Tuesday. Unfortunately, this renewable and alternative energy emerging player has lost one-third of its value on the news.

Ocean Power announced that it terminated Charles Dunleavy as Chief Executive Officer and as an employee of the company, effective June 9, 2014. He was simultaneously stripped of his position as Chairman of the company’s Board of Directors.

David L. Keller, who is listed as a non-Executive Director of the company since October 2013, has been assigned the interim-CEO role. Keller will continue in this position while the Company searches for a permanent replacement.

Ocean Power’s board has appointed a special committee of outside directors to conduct an internal investigation into the agreement between Victorian Wave Partners Pty Ltd, a project-specific entity under Ocean Power and the Australian Renewable Energy Agency. The investigation is also around related public statements concerning that project. Lastly, Ocean Power The Special Committee will retain outside counsel to assist in this investigation.

Ocean power Technologies said,

“The Company does not believe any issues the Special Committee will investigate will affect its previously filed financial statements. The Company does not anticipate restating any of its financial statements, and the Company anticipates it will file its upcoming annual report on time.”

Keller was previously an independent director of ThermoEnergy, Inc. from April 2013 to May 2014; he also served as President, CEO, and director of Global Power Equipment Group Inc. from September 2009 until June 2012. Keller was also previously President and Chief Operating Officer of Babcock & Wilcox Company from March 2001 until his retirement in June 2007.

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The good news is that this may remove accounting irregularities risks. We would focus on the word “may” there. That being said, terminating a CEO is never a good thing under the instance of investigating prior company deals.

Ocean Power Technologies shares closed down a whopping 33% at $1.64, and the company’s market cap fell back down to $20.75 million. The low on Tuesday was $1.53, and its 52-week trading range is $1.50 to $7.01. This is likely going to leave a serious cloud hanging over the company until this is resolved – if not for quite some time.

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