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A123 Systems, Inc. AONE Securities Stock Fraud
|Company:||A123 Systems, Inc.|
|Class Period:||Feb-28-11 to Mar-23-12|
|Lead Plaintiff Deadline:||Jun-1-12|
|Court:||District of Massachusetts|
A123 designs, develops, manufactures and sells advanced, rechargeable lithium ion batteries and battery systems. The Complaint alleges that throughout the Class Period, defendants made false and/or misleading statements, or failed to disclose material information regarding manufacturing flaws in its Livonia, Michigan facility.
On March 26, 2012, the Company disclosed that it would incur costs of over $55 million in the next several quarters to replace battery modules and packs that might be defective. Specifically, five auto customers received parts that likely contained defective prismatic cells.
The $55 million represents approximately one quarter of the Company's projected annual revenue for 2012, which A123 has estimated to be between $230 million and $300 million. On these revelations, A123 shares declined $0.21 per share or more than 12%, to close at $1.49 per share on March 26, 2012.
On March 28, 2012, an analyst at Deutsche Bank wrote that the Company may be unable to raise capital as a result of this charge and could lose contracts as a result of the recall. As a result of this news, the Company's stock declined an additional $0.18 per share or nearly 13%, to close at $1.22 per share on March 28, 2012.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
A123 Systems, Inc. AONE Securities Fraud Legal HelpIf you have suffered from financial losses, you may qualify for damages or remedies that may be awarded in a possible A123 Systems, Inc. securities class action lawsuit. Please click the link below to submit your complaint for a free evaluation.
Published on Apr-3-12
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