This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cohen Milstein Sellers & Toll PLLC Announces Investigation Of A123 Systems, Inc.

Stocks in this article: AONE

Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether A123 Systems, Inc. (“A123” or the “Company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

A class action lawsuit has been filed in the U.S. District Court for the Southern District of New York by another law firm on behalf of purchasers of the common stock of A123 Systems, Inc. (NASDAQ: AONE) between February 28, 2011 and March 23, 2012, inclusive (the “Class Period”).

A123 designs, develops, manufactures, and sells rechargeable lithium-ion batteries and battery systems, and its revenues are generated by just a few companies such as Fisker Automotive, Inc. and BAE Systems, both of which account for a substantial portion of the Company’s revenues.

The complaint alleges that A123 and certain of its officers and/or directors (“Defendants”) misrepresented and/or failed to disclose that: (1) the Company had severe manufacturing deficiencies at its Livonia, Michigan manufacturing facility, which produced defective prismatic cells that resulted in premature failure of battery modules and packs; (2) A123 would likely be required to recall and replace the affected modules and packs and incur substantial costs in doing so, threatening the financial viability of the Company; and (3) as a result of the foregoing, the Company’s financial statements were materially false and misleading.

On December 23, 2011, Bloomberg News reported that in a memo on A123’s website, it stated that the Company had found a “ potential safety issue” in batteries it had supplied to Fisker, but that the Company had already “developed a confirmed repair for this situation” to fix the fewer than 50 cars affected. The memo further stated that the Company expected a “ minimal financial impact” and that its relationship with Fisker “ remains strong.”

On March 26, 2012, A123 announced that it would incur more than $55 million in costs over the next several quarters to replace “ potentially defective battery packs,” and had “ launched a field campaign to replace battery modules and packs that may contain defective prismatic cells produced at A123's Livonia, Mich. manufacturing facility.” The Company stated that it had already begun building replacements and expected to begin shipping replacement modules and packs to affected customers that week, and that the expected cost of the replacement program would be spread “ over the next several quarters.” The Company had previously projected 2012 revenues of $230 million to $300 million. The price of A123 shares fell from $1.70 to $1.41 on March 26, 2012 .

Cohen Milstein encourages all investors who purchased A123 common stock between February 28, 2011 and March 23, 2012 or former employees with information concerning this matter to contact the firm.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs