NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who acquired Ability, Inc. (NASDAQ:ABIL) securities between September 8, 2015 and April 29, 2016 (the “Class Period”).
The lawsuit 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 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.
If you acquired Ability securities during the Class Period, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters please contact J. Brandon Walker, Esq. by email at email@example.com, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information, please go to www.bespc.com.