The complaint charges Ability and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Ability provides tactical communications intelligence solutions for government agencies, military forces, and law enforcement and homeland security agencies worldwide.
The complaint alleges that, during the Class Period, defendants materially misstated the Company's business metrics and financial prospects, including, but not limited to, failing to disclose that: (a) the Company had materially overstated its income by failing to account for commissions; (b) the Company had materially overstated its operating results by improperly recognizing revenue on multiple element sales transactions; (c) the Company had a material weakness in its internal controls over financial reporting and disclosure controls and that such controls were ineffective; and (d) as a result of the foregoing, the Company's financial statements for the years ending December 31, 2013 and 2014 were materially false and misleading and not prepared in accordance with U.S. Generally Accepted Accounting Principles.
On September 8, 2015, Ability issued a joint press release with Cambridge Capital Acquisition Corporation ("Cambridge") announcing the execution of a definitive agreement under which Ability would merge with Cambridge. On December 23, 2015, Ability announced that the merger with Cambridge had closed. As a result of the merger, Cambridge changed its name to Ability Inc. and the Company's ordinary shares and warrants began trading on the NASDAQ.
On May 2, 2016, Ability announced its financial results for the fourth quarter and full-year 2015. The Company also announced that it would be restating its consolidated financial statements as of December 31, 2014 and for the two years in the period then ended. In reaction to these announcements, on May 2, 2016, the price of Ability common stock fell $2.42 per share, or 33%, to close at $4.90 per share, on heavy trading volume.
Plaintiff seeks to recover damages on behalf of all purchasers of Ability common stock during the Class Period (the "Class"). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller is widely recognized as one of the leading law firms advising U.S. and international institutional investors in securities litigation and portfolio monitoring. With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history and was ranked first in both the total amount and number of shareholder class action recoveries in ISS's SCAS Top 50 report for the last two years. Robbins Geller attorneys have shaped the law in the areas of securities litigation and shareholder rights and have recovered tens of billions of dollars on behalf of the Firm's clients. Robbins Geller not only secures recoveries for defrauded investors, it also strives to implement corporate governance reforms, helping to improve the financial markets for investors worldwide. Please visit rgrdlaw.com/cases/ability/ for more information.
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SOURCE Robbins Geller Rudman & Dowd LLP