STEVENSON, Md., Oct. 1, 2013 (GLOBE NEWSWIRE) -- Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of A123 Systems, Inc. ("A123 Systems" or the "Company") (OTC:AONEQ) securities during the period between February 28, 2011 and October 16, 2012, inclusive (the "Class Period").
If you have suffered a net loss from investment in A123 Systems, Inc. securities purchased on or after February 28, 2011, and held through any of the revelations of negative information on November 4, 2011, May 11, 2012, and/or October 16, 2012, as described below, at no cost to you, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at firstname.lastname@example.org, by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 60 years.
No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than November 26, 2013 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period.
The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the defendants' failure to disclose during the Class Period that by February 2011, Fisker Automotive, Inc. ("Fisker"), the Company's largest customer, was in default on production milestones in its U.S. Department of Energy ("DOE") funding agreement, threatening Fisker's federal funding and ability to pay A123 Systems, that by June 2011, the DOE had cut off disbursements to Fisker, that by the fall of 2011, Fisker had run out of cash and was refusing to accept batteries from A123 Systems, that the Company's $20.5 million investment in Fisker's preferred stock was materially impaired, and that the carrying value of A123's long-term grant receivable and the carrying value of accounts receivable due A123 Systems from Fisker were overstated. According to the complaint, following the Company's November 4, 2011 disclosure that it was revising its revenue guidance downward due to an unexpected reduction in orders for battery packs from Fisker, the Company's May 11, 2012 disclosure that its revolving credit facility with Silicon Valley Bank had been amended to eliminate the borrowing facility, and the Company's October 16, 2012 disclosure that it had filed for bankruptcy protection under Chapter 11, the value of A123 Systems shares declined significantly.
If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.
CONTACT: Charles J. Piven Brower Piven, A Professional Corporation Stevenson, Maryland 410/415-6616 email@example.comSource: Brower Piven, A Professional Corporation