A123 Systems, Inc.
Class Period: Feb 28, 2011 to Mar 23, 2012
Lead Plaintiff Deadline: Jun 1, 2012 + Deadline passed
Summary of Case:
A securities class action has been filed against A123 Systems, Inc. ("A123") on behalf of all persons who purchased or otherwise acquired A123 securities between February 28, 2011 and March 23, 2012. This case has been filed in the USDC - Massachusetts.
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 purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.