Harwood Feffer LLP 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 the common stock of Advanced Batteries Technologies, Inc. (“ABAT" or the "Company") (NASDAQ: ABAT – News) between November 24, 2008 and March 29, 2011, inclusive (the "Class Period").
No class has yet been certified in the above action. Class members 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 June 6, 2011 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. You are not required to have sold your shares to seek damages to serve as a Lead Plaintiff. You may contact the Harwood Feffer LLP website ( http://www.hfesq.com) or Samuel K. Rosen, directly, at firstname.lastname@example.org to ask any questions you may have in that regard.
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company’s claimed distribution relationships with certain manufacturers of electric motorcycles and scooters were false; (2) the Company’s reported financial statements were grossly inflated by including gross profit margins which were unrealistic for similar companies in its industry; the Company paid $1.5 million to acquire a company that is non-existent; (4) the Company paid $20 million to purchase a company, but failed to disclose the related party nature of the transaction; (5) the Company paid $22 million to acquire another company without disclosing that it was a bailout of a related company; (6) the Company misrepresented that it owned a Company subsidiary when it did not, or the Company failed to disclose that it entered into a related party transaction with the Company’s Chairman and CEO which resulted in the owner of that subsidiary being the Chairman and CEO, and not ABAT; (7) the Company lacked adequate internal and financial controls; and (8) as a result of the foregoing, the Company’s statements were materially false and misleading at all relevant times.