Battery Co. A123 Faces Securities Suit Over $55M Recall

Law360, New York (April 3, 2012, 1:22 PM EDT) -- Lithium ion battery maker A123 Systems Inc. was hit with a putative securities class action Monday in Massachusetts federal court in which shareholders are seeking to recover damages caused by allegedly false and misleading statements surrounding a $55 million recall.

Shareholder Scott Heiss accuses A123 of failing to disclose that the company had “severe manufacturing deficiencies” at one of its plants, which led to the production of defective battery cells resulting in a wide-ranging recall that the company expects to cost $55 million — one-quarter of...
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