Faruqi & Faruqi, LLP Announces Investigation of A123 Systems Inc.

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Apr 04, 2012, 07:25 ET

NEW YORK, April 4, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at A123 Systems Inc. ("A123" or the "Company") (NASDAQ: AONE).

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The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) the A123 was experiencing severe manufacturing deficiencies at its Livonia, Michigan manufacturing facilities; (2) the Company's manufacturing problems resulted in the production of defective prismatic cells and the premature failure of battery modules and packs; and (3) as a result of faulty products, A123 would be required to recall and replace product parts at substantial cost to the Company.

On March 26, 2012, A123 announced that it had launched a campaign to replace defective battery modules and packs due to problems with the prismatic cells produced at its Livonia, Michigan factory. On this surprising disclosure, the Company's share price declined by $0.21 per share, or 12%, to close at $1.49 per share on heavy volume. On March 28, 2012, an analyst at Deutsche Bank wrote that the Company could have difficulty raising capital and could lose contracts as a result of the product recall. On this extremely disappointing news, the price of the company's common stock declined by an additional $0.18 per share, or 13%, to close at $1.22 per share on March 28, 2012.

Request more information now by clicking here: www.faruqilaw.com/AONE.

Take Action

If you purchased A123 securities between February 28, 2011 and March 23, 2012 and would like to discuss your legal rights, visit www.faruqilaw.com/AONE. You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to [email protected] or [email protected]. Faruqi & Faruqi, LLP also encourages anyone with information regarding A123's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential matter.

FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
[email protected]
Francis McConville, Esq.
[email protected]
Telephone: (877) 247-4292 or (212) 983-9330

SOURCE Faruqi & Faruqi, LLP