WILMINGTON, Del.--(BUSINESS WIRE)--Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the District of Massachusetts on behalf of all persons or entities that purchased the securities of A123 Systems Inc. (“A123” or the “Company”) (NasdaqGS: AONE) between February 28, 2011 and March 23, 2012, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
If you purchased shares of A123 during the Class Period, or purchased shares prior to the Class Period and still hold A123 stock, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Scott J. Farrell, Esquire of Rigrodsky & Long, P.A., 825 East Gate Boulevard, Suite 300, Garden City, NY at (888) 969-4242, by e-mail to info@rigrodskylong.com, or at: http://www.rigrodskylong.com/investigations/a123-systems-inc-aone.
A123, a Delaware corporation headquartered in Waltham, MA, together with its subsidiaries, designs, develops, manufactures, and sells rechargeable lithium-ion batteries and energy storage systems worldwide. The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and failed to disclose materially adverse facts, about the Company’s business, operations and prospects. Specifically, the Complaint alleges that the Company had severe manufacturing deficiencies at its Livonia, Michigan manufacturing facilities, causing the production of defective prismatic cells that caused premature failure of battery modules and packs; and, as a result of these product defects, A123 would likely be required to recall and replace the parts at substantial costs, threatening the financial viability of the Company.
On March 26, 2012, the Company announced that it had launched a campaign to replace defective battery modules and packs due to problems with the prismatic cells manufactured at its Livonia, Michigan plant. On this disclosure, the price of the Company’s stock declined $0.21 per share, or 12%, to close at $1.49 per share on heavy volume, on March 26, 2012. On March 28, 2012, an analyst at Deutsche Bank wrote that the Company could have difficulty raising capital and could lose contracts as a result of the recall. On this news, the price of the company’s common stock declined $0.18 per share, or 13%, to close at $1.22 per share on March 28, 2012.
If you wish to serve as lead plaintiff, you must move the Court no later than June 1, 2012. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.
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