Glancy Binkow & Goldberg LLP Announces Class Action Lawsuit Against A123 Systems

Glancy Binkow & Goldberg LLP announces that a class action lawsuit has been filed in the United States District Court for the District of Massachusetts on behalf of all persons or entities who purchased the securities of A123 Systems, Inc. (“A123” or the “Company”) (NASDAQ:AONE) between February 28, 2011 and March 23, 2012, inclusive (the “Class Period”), seeking to pursue remedies under the Securities Exchange Act of 1934. A123, together with its subsidiaries, designs, develops, manufactures and sells rechargeable lithium-ion batteries and energy storage systems worldwide.

The Complaint alleges that during the Class Period the defendants issued materially false and misleading statements concerning the Company’s operations and financial prospects. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company had severe manufacturing deficiencies at its Livonia, Michigan manufacturing facility, which produced defective prismatic cells that resulted in premature failure of battery modules and packs; (2) as a result of the defective prismatic cells, A123 would likely be required – and incur substantial costs – to recall and replace the affected modules and packs, threatening the financial viability of the Company; and (3), as a result of the foregoing, the Company’s statements were materially false and misleading at all relevant times.