Bankrupt Battery Maker's Execs Hid Debt Woes, Suit Says

Law360, New York (September 12, 2012, 1:03 PM EDT) -- Valence Technology Inc.'s executives hid the battery maker's crushing debt and cash-flow problems from investors even as it was on the cusp of bankruptcy, a putative class of shareholders alleged in a complaint filed Monday in New York federal court.

Valence, whose lithium iron magnesium phosphate rechargeable batteries are used in electric and hybrid cars and Segway Inc. transporters, had long relied on its chairman and largest shareholder, Carl E. Berg, to pump the company with $100 million in funding over the years even though it...
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Case Information

Case Title

McNulty v. Kanode et al


Case Number

1:12-cv-06842

Court

New York Southern

Nature of Suit

Stockholders Suits

Judge

Shira A. Scheindlin

Date Filed

September 10, 2012

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