WAYNE, Pa., May 26, 2016 /PRNewswire/ -- Ryan & Maniskas, LLP announces that a class action lawsuit has been filed in United States District Court for the United States District Court for the Southern District of New York on behalf of purchasers of Ability Inc. ("Ability" or the "Company") (NASDAQ: ABIL) common stock during the period between September 8, 2015 and April 29, 2016, inclusive (the "Class Period").
Ability shareholders may, no later than July 25, 2016, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Ability and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218 or to sign up online, visit: www.rmclasslaw.com/cases/abil.
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.
If you are a member of the class, you may, no later than July 25, 2016, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.
For more information regarding this, please contact Ryan & Maniskas, LLP (Richard A. Maniskas, Esquire) toll-free at (877) 316-3218 or by email at firstname.lastname@example.org or visit: www.rmclasslaw.com/cases/abil. For more information about class action cases in general or to learn more about Ryan & Maniskas, LLP, please visit our website: www.rmclasslaw.com.
Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan & Maniskas, LLP is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.
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SOURCE Ryan & Maniskas, LLP