NEW YORK--(EON: Enhanced Online News)--The law firm of Wolf Haldenstein Adler Freeman & Herz LLP announces that it is investigating potential federal securities claims against David P. Vieau and David J. Prystash, and potentially certain third parties, in connection with the failure and bankruptcy of A123 Systems, Inc. (“A123” or the “Company”) (NASDAQ:AONEQ, formerly AONE)
Before its bankruptcy, A123 was a maker of batteries for electric cars, and its principal customer was Fisker Automotive, Inc. (“Fisker”), which intended to use A123s batteries in its flagship model. In June 2010, Fisker’s inability to meet development milestones imperiled its ability to draw on U.S. Department of Energy loans. In February 2011, Fisker defaulted on those loans, and within months, and government halted disbursements. As both a major supplier and major owner of Fisker, A123 and its executives had front-row seats for Fisker’s downward spiral, but disclosed nothing publicly. In fact, shortly after Fisker’s default, A123 announced and conducted a public offering of both stock and bonds, without advising investors of the shape its major customer was in.
When Fisker inevitably ran out of cash and stopped purchasing batteries from A123, A123 was doomed, conducting a large layoff in December 2011 and finally filing for bankruptcy protection in October 2012. Its assets have since been sold to auto parts maker Wanxiang Group.
The record developed at later Congressional hearings concerning DOE loans, begun in April 2013, reveals the story of Fisker’s collapse, facts that A123 executives had access to all along, but did not disclose to the public the impending failure of its major source of revenue, even when seeking new public investment.
Wolf Haldenstein has been representing individual and institutional investors for many years, serving as lead counsel in numerous cases in United States federal and state courts. Please visit the Wolf Haldenstein website (http://www.whafh.com) for more information about the firm.
Please contact us no later than November 22, 2013 if you purchased A123 securities between February 28, 2011 and October 16, 2012 and wish to discuss this matter with us, or have any questions concerning your rights and interests:
Gregory M. Nespole
Wolf Haldenstein Adler Freeman & Herz LLP
270 Madison Avenue
New York, New York 10016