This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bronstein, Gewirtz & Grossman, LLC Announces Investigation Of A123 Systems Inc.

Attorney Advertising--Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of the securities of A123 Systems, Inc. (“A123” or the “Company”) (NasdaqGS: AONE -News), concerning whether the company and certain of its officers and directors have violated federal securities laws.

On Monday, March 26, 2012, Shares of A123 fell 21 cents or 12% and closed at $1.49 after the maker of batteries for electric cars estimated that it would spend about $55 million to replace battery modules and packs that might be defective. The $55 million represents as much as one quarter of this year's projected revenue, which A123 has estimated between $230 million and $300 million. Five auto customers received parts that could have had defective cells, A123 CEO David Vieau said. The company lowered its full-year revenue outlook late in 2011 after carmaker Fisker Automotive, cut orders for A123's battery packs. According to one analyst, he estimated that battery sales to Fisker accounted for about $40.7 million of A123's $159.1 million in total revenue in 2011.

A123 Systems expects to start shipping replacement packs and modules to affected customers this week. It will pay to replace the equipment over the next several quarters. The extra costs come as A123 Systems has been spending beyond its revenue. It went public in September 2009 and has yet to turn a profit. The company has sufficient liquidity to pay for the replacements, but said the company will likely adjust its fund-raising strategy because of the additional cost, Vieau said.

If you are aware of any facts relating to this investigation, or purchased shares of A123, you can assist this investigation by contacting either Peretz Bronstein or Eitan Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email Those who inquire by e-mail are encouraged to include their mailing address and telephone number.

Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.03 -2.90%
FB $116.73 7.20%
GOOG $691.02 -2.10%
TSLA $247.54 -1.60%
YHOO $36.59 -0.97%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs