PRLog - April 30, 2012 - SAN DIEGO -- Certain directors and officers of A123 Systems, Inc. are under the investigation over possible breaches of fiduciary duties in connection with certain statements.
Investors who are current long term investors in A123 Systems, Inc. (NASDAQ:AONE)
The investigation by a law firm for current long term investors in A123 Systems, Inc. (NASDAQ:AONE)
The investigation is on behalf of current long term investors in A123 Systems, Inc. (NASDAQ:AONE)
According to that complaint filed in the U.S. District Court for the District of Massachusetts the plaintiff alleges that A123 Systems, Inc. violated the Securities Exchange Act of 1934 by issuing allegedly false and/or misleading statements, or by allegedly failing to disclose material information regarding manufacturing flaws in its Livonia, Michigan facility.
On March 23, 2012 A123 Systems, Inc. announced that the company has launched a field campaign to replace battery modules and packs that may contain defective prismatic cells produced at A123's Livonia, Mich. manufacturing facility. A123 Systems, Inc said it anticipates that the cost of replacing the affected customer modules and packs will be approximately $55 million and expects it will be funded over the next several quarters. The company’s CEO told reporters on a March 26 conference call that five customers are potentially affected by the defects.
Earlier this month a Fisker Karma shut down in a Consumer Reports test due to a flaw in A123 Systems’ battery. The cause of the defect was reportedly faulty calibration of one of four welding machines in the Michigan manufacturing facility that caused misalignment of a component in some cells.
A123 Systems, Inc. said in a statement on November 4, 2011 that Fisker Karma unexpectedly reduced its orders for battery packs in the fourth quarter of last year to balance parts inventories.
In December 2011, shortly after the Fisker Karma went on sale, Fisker Karma already recalled over 200 cars to fix battery packs made by A123 Systems because of a potential risk of leaking coolant, which could potentially cause a fire.
An analyst reportedly said that the cost to replace the flawed battery packs and modules represents a severe impact on cash reserves. The analyst said that they have not enough confidence that A123 Systems, Inc. can raise sufficient capital (without massive equity dilution) and/or continue to augment their book of future business.
NASDAQ:AONE shares close on Friday, April 27, 2012, at $1.12 per share.
Those who are current long term investors in A123 Systems, Inc. (NASDAQ:AONE)