The law firm of Lieff Cabraser Heimann & Bernstein, LLP is investigating potential illegal conduct as alleged in class action lawsuits brought on behalf of purchasers of the securities of Ener1, Inc. ("Ener1" or the "Company") (Nasdaq: HEV) between January 10, 2011 and August 15, 2011, inclusive (the "Class Period"). If you purchased Ener1 securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than October 17, 2011. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action. Ener1 shareholders who wish to learn more about the action and how to seek appointment as lead plaintiff should click here or contact Sharon Lee of Lieff Cabraser toll-free at (800) 541-7358. Background on the Ener1 Securities Class Litigation The actions are brought against Ener1 and certain of its officers and directors for violations of the Securities Exchange Act of 1934. Ener1, headquartered in New York, New York, designs, develops and manufactures high-performance batteries and battery pack systems. In 2009 and 2010, Ener1 made separate investments in electric vehicle manufacturer Think Global, AS ("Think Global") and its majority owner Think Holdings, AS ("Think Holdings"). The Complaint alleges that throughout the Class Period, defendants failed to disclose: (1) that Think Global lacked adequate capital to continue operations; (2) the Company failed to timely impair the value of its Think Holdings investments; (3) the outstanding loans receivable and accounts receivable due from Think Holdings and Think Global were uncollectible; and (4) the Company's financial statements were materially misstated and its financial results were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP").
On June 22, 2011, the Company disclosed that a material charge was required under GAAP applicable to Ener1 related to the loans receivable of Think Holdings and accounts receivable of Think Global on the basis of Think Global's announcement that it will file bankruptcy proceedings in Norwegian courts on June 22, 2011. Ener1 estimated that the amount of the charge would be $35.4 million, but was subject to change to the extent that the Company received any recovery as a result of the liquidation of Think Global.On August 9, 2011, after the market closed, the Company disclosed accounting errors related to loans receivable of Think Holdings and accounts receivable of Think Global held by Ener1. Ener1 indicated that it would not be able to timely file its second quarter 2011 Form 10-Q. On this news, the price of Ener1 shares fell $0.08 or 9.6%, to close at $0.75 on August 10, 2011. On August 15, 2011, Ener1 disclosed that the Company's financial statements for the year ended December 31, 2010 and for the quarterly period ended March 31, 2011 should no longer be relied upon and should be restated. The determination was made following an assessment of certain accounting matters related to the loans receivable owed to Ener1 by Think Holdings and accounts receivable owed to Ener1 by Think Global held by the Company, and the timing of the recognition of the impairment charge related to the Company's investment in Think Holdings originally recorded during the quarter ended March 31, 2011. On this news, shares of Ener1 fell another $0.33 per share, or 42.31%, to close on August 16, 2011, at $0.45 per share, on unusually heavy volume. About Lieff Cabraser Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
Since 2003, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs' law firms in the nation. In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs' law firms in the United States to receive this honor for the last eight consecutive years.For more information about Lieff Cabraser and the firm's representation of investors, please visit http://www.lieffcabraser.com. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.