A lawsuit was filed for investors in shares of A123 Systems, Inc. (NASDAQ:AONE) over alleged securities laws violations. Deadline: June 1, 2012 and other NASDAQ:AONE stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 04/03/2012 -- An investor in NASDAQ:AONE shares filed a lawsuit in the U.S. District Court for the District of Massachusetts against A123 Systems, Inc. over alleged Violations of Federal Securities Laws in connection with certain financial statements.
Investors who purchased shares of A123 Systems, Inc. (NASDAQ:AONE), including but not limited to those who purchased NASDAQ:AONE between February 28, 2011 and March 23, 2012, have certain options and for certain NASDAQ:AONE investors are strict and short deadlines running. Deadline: June 1, 2012. NASDAQ:AONE stockholders 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 who purchased A123 Systems, Inc. (NASDAQ:AONE securities between February 28, 2011 and March 23, 2012, that A123 Systems, Inc. and certain of its top officials violated the Securities Exchange Act of 1934 by issuing allegedly false and/or misleading statements, or by allegedly failing to disclose material information regarding manufacturing flaws in its Livonia, Michigan facility.
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 conference call that five customers are potentially affected by the defects.
Earlier this month 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, 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.
NASDAQ:AONE shares close on Monday, April 2, 2012 at $1.02 per share.
Those who purchased shares of A123 Systems, Inc. (NASDAQ:AONE), including but not limited to those who purchased NASDAQ:AONE between February 28, 2011 and March 23, 2012, you have certain options and for certain NASDAQ:AONE investors are strict and short deadlines running. Deadline: June 1, 2012. NASDAQ:AONE stockholders should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego