SAN DIEGO--(BUSINESS WIRE)--Shareholder rights firm Robbins Umeda LLP is investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors at A123 Systems, Inc. (NASDAQ: AONE). Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Gregory E. Del Gaizo at (800) 350-6003, info@robbinsumeda.com, or via the shareholder information form on the firm's website.
Robbins Umeda LLP's investigation focuses on whether directors and officers at A123 breached their fiduciary duties to shareholders by maintaining inadequate controls to the detriment of the company and investors. In addition, the firm is investigating allegations that these same fiduciaries issued improper statements concealing flaws in battery packs manufactured for auto makers at the company's Livonia, Michigan facility.
A123 investors were first alerted to the true condition of the company's business on March 26, 2012, when the company announced that it would have to recall the defective battery packs at an estimated cost of approximately $55 million, an amount equal to nearly a quarter of the company's expected annual revenue. Since this news was released, the company's stock has fallen from $1.70 per share to just $1.02 per share. In addition, since these facts have emerged, A123 has increasingly become the focus of costly public and legal scrutiny.
Robbins Umeda LLP highlights that A123 shareholders have the option to file a shareholder derivative action to hold those officers and directors accountable for damaging the company. Remedies commonly sought in derivative actions include corporate governance reforms designed to prevent future misconduct, removal of officers or directors whose misconduct injured the corporation, and monetary payments in the form of damages and disgorgement of ill-gotten gains.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to http://www.robbinsumeda.com.
Press release link: http://www.robbinsumeda.com/shareholders-rights-blog/a123-systems-inc/
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