Ability Inc. (Nasdaq: ABIL)
A class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of Ability Inc. (“Ability” or the “Company”) (NASDAQ:ABIL) common stock during the period between September 8, 2015 and April 29, 2016, inclusive (the “Class Period”).
The complaint charges Ability and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Ability provides tactical communications intelligence solutions for government agencies, military forces, and law enforcement and homeland security agencies worldwide.
The complaint alleges that, during the Class Period, defendants materially misstated the Company’s business metrics and financial prospects, including, but not limited to, failing to disclose that: (a) the Company had materially overstated its income by failing to account for commissions; (b) the Company had materially overstated its operating results by improperly recognizing revenue on multiple element sales transactions; (c) the Company had a material weakness in its internal controls over financial reporting and disclosure controls and that such controls were ineffective; and (d) as a result of the foregoing, the Company’s financial statements for the years ending December 31, 2013 and 2014 were materially false and misleading and not prepared in accordance with U.S. Generally Accepted Accounting Principles.
On September 8, 2015, Ability issued a joint press release with Cambridge Capital Acquisition Corporation (“Cambridge”) announcing the execution of a definitive agreement under which Ability would merge with Cambridge. On December 23, 2015, Ability announced that the merger with Cambridge had closed. As a result of the merger, Cambridge changed its name to Ability Inc. and the Company’s ordinary shares and warrants began trading on the NASDAQ.
On May 2, 2016, Ability announced its financial results for the fourth quarter and full-year 2015. The Company also announced that it would be restating its consolidated financial statements as of December 31, 2014 and for the two years in the period then ended. In reaction to these announcements, on May 2, 2016, the price of Ability common stock fell $2.42 per share, or 33%, to close at $4.90 per share, on heavy trading volume.
If you are a current shareholder and/or purchased stock between September 8, 2015 and April 29, 2016, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.
Please Note: Neither the submission to nor the receipt of information by The Law Offices of Marc S. Henzel or one of its attorneys through this website constitutes an agreement by the firm to represent the individual and does not create an attorney-client relationship.