San Diego, CA -- (SBWIRE) -- 10/01/2013 -- An investor, who purchased shares of A123 Systems, Inc. (formerly NASDAQ:AONE), filed a lawsuit in the U.S. District Court for the Southern District of New York against certain former officers and directors of A123 Systems, Inc. over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between February 28, 2011 and October 16, 2012

Investors who purchased a significant amount of shares of A123 Systems, Inc. (NASDAQ:AONE) between February 28, 2011 and October 16, 2012, have certain options and for certain investors are short and strict deadlines running. Deadline: November 26, 2013. A123 Systems, Inc. (NASDAQ:AONE investors should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.

According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired securities of A123 Systems, Inc. (NASDAQ:AONE) between February 28, 2011 and October 16, 2012, that certain of its officers and directors of A123 Systems, Inc violated the Securities Exchange Act of 1934.

More specifically, the plaintiff alleges that defendants issued materially false and misleading statements regarding A123 Systems' financial performance and future prospects, including allegedly failing to disclose that by February 2011, Fisker was in default on production milestones in its U.S. Department of Energy ("DOE") funding agreement, threatening Fisker's DOE funding and ability to pay A123 Systems, Inc., that by June 2011, the DOE had cut off disbursements to Fisker, that by the fall of 2011, Fisker had run out of cash and was refusing to accepting batteries from A123 Systems, Inc., that A123's $20.5 million investment in Fisker's preferred stock was materially impaired, that the carrying value of A123 Systems' long-term grant receivable was overstated, that the carrying value of accounts receivable due A123 Systems, Inc. from Fisker was overstated, and that as a result, A123 Systems, Inc. was not on track to achieve the financial results the market had been led to expect between February 28, 2011 and October 16, 2012.

Shares of A123 Systems, Inc. (NASDAQ:AONE), which traded in October 2009 as high as $25.77 in October 2009, dropped from $1.70 per share on March 23, 2012 to as low as $1.18 during March 28, 2012 after A123 Systems, Inc. announced that the company has launched a field campaign to replace battery modules and packs that may contain defective prismatic cells produced at A123's Livonia, Mich. manufacturing facility. A123 Systems, Inc said it anticipates that the cost of replacing the affected customer modules and packs will be approximately $55 million and expects it will be funded over the next several quarters.

The company’s chief executive officer told reporters on a March 26, 2012 conference call that five customers are potentially affected by the defects.

Earlier a Fisker Karma shut down in a Consumer Reports test due to a flaw in A123 Systems’ battery. The cause of the defect was reportedly faulty calibration of one of four welding machines in the Michigan manufacturing facility that caused misalignment of a component in some cells.

However, in December 2012, shortly after the Fisker Karma went on sale Fisker Karma already recalled over 200 cars to fix battery packs made by A123 Systems because of a potential risk of leaking coolant, which could potentially cause a fire.

A123 Systems, Inc. reported that its annual Revenue rose from $68.53million in 2008 to $159.15million in 2011. However, despite increasing revenue A123 Systems, Inc. reported that its Net Loss increased from $80.47million in 2008 to $257.73million in 2011. A123 Systems, Inc. said in a statement on November 4, 2011 that Fisker Karma unexpectedly reduced its orders for battery packs in the fourth quarter of last year to balance parts inventories.

An analyst reportedly said that the cost to replace the flawed battery packs and modules represents a severe impact on cash reserves. The analyst said that they have not enough confidence that A123 Systems, Inc. can raise sufficient capital (without massive equity dilution) and/or continue to augment their book of future business.

A123 Systems, Inc. filed for Chapter 11 bankruptcy protection in late 2012 and was bought by Wanxiang Group in early 2013.

Those who purchased shares of A123 Systems, Inc. (NASDAQ:AONE), have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com