Glancy Binkow & Goldberg LLP Announces Class Action Lawsuit Against A123 Systems, Inc.

LOS ANGELES--(BUSINESS WIRE)--Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of a class consisting of all persons or entities who purchased the common stock of A123 Systems, Inc. (“A123” or the “Company”) (NASDAQ:AONE) between February 28, 2011 and March 23, 2012, inclusive (the “Class Period”).

A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at [phone] or Toll Free at [phone], by email at [e-mail], or visit our website at http://www.glancylaw.com.

A123, together with its subsidiaries, designs, develops, manufactures and sells rechargeable lithium-ion batteries and energy storage systems worldwide. The Complaint alleges that the defendants issued materially false and misleading statements concerning the Company’s operations and financial prospects. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company had severe manufacturing deficiencies at its Livonia, Michigan, manufacturing facility, which produced defective prismatic cells that resulted in premature failure of battery modules and packs; (2) as a result of the defective prismatic cells, A123 would likely be required – and incur substantial costs – to recall and replace the affected modules and packs, threatening the financial viability of the Company; and (3), as a result of the foregoing, the Company’s statements were materially false and misleading at all relevant times.

On March 26, 2012, the Company disclosed that it will incur costs of approximately $55 million over the next several quarters to replace potentially defective battery packs and modules resulting from a manufacturing defect at the Company’s Livonia facility. As a result of this news, A123 shares declined $0.21 per share, or more than 12%, to close at $1.49 per share on March 26, 2012

Plaintiff seeks to recover damages on behalf of class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.

If you are a member of the class described above, you may move the Court, no later than June 1, 2012, to serve as lead plaintiff; however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, by telephone at [phone] or Toll Free at [phone], by e-mail to [e-mail], or visit our website at http://www.glancylaw.com.

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