San Diego, CA -- (SBWIRE) -- 05/16/2012 -- A deadline is coming up on June 1, 2012 in the lawsuit filed for investors in NASDAQ:AONE shares over alleged securities laws violations in connection with certain financial statements made by A123 Systems, Inc.
Investors with a substantial investment in NASDAQ:AONE shares between February 28, 2011 and March 23, 2012, should get active before the Deadline that is coming up on June 1, 2012, and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
According to the complaint filed in the U.S. District Court for the District of Massachusetts the plaintiff alleges on behalf of purchasers of 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.
On March 26, 2012 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 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.
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 fell from over $10 in 2011 to as low as $0.82 on April 4, 2012 and closed on May 10, 2012 at $1.12 per share.
Those who purchased shares of A123 Systems, Inc. (NASDAQ:AONE) have certain options should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego