Pomerantz Haudek Grossman & Gross LLP has filed a class action lawsuit against Ener1, Inc. ("Ener1" or the "Company") (NASDAQ:HEV) and certain of its officers. The class action (Civil Action No. 11 Civ. 5795) in the United States Southern District Court of New York is on behalf of a class consisting of all persons or entities who purchased Ener1 securities between January 10, 2011 and August 15, 2011, both dates inclusive (the "Class Period"). The Complaint alleges violations of Sections 10(b) and 20(a) of the Exchange Act, 15 U.S.C. Sections 78j(b) and 78t(a); and SEC Rule 10b-5 promulgated thereunder by the SEC, 17 C.F.R. Section 240.10b-5.
If you are a shareholder who purchased Ener1 securities during the Class Period, you have until October 17, 2011 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Rachelle R. Boyle at rrboyle@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x350.
The Complaint charges Ener1 and certain of its executive officers and/or directors with violations of federal securities laws. Ener1 designs, develops and manufactures high-performance batteries and battery pack systems. In 2009 and 2010, Ener1 made separate investments in electric-vehicle manufacturer Think Global, AS and its majority owner Think Holdings, AS.
The Complaint alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that, among other things: (1) Think Global lacked adequate operating capital, and the ability to raise capital, to continue operations; (2) as a result, Ener1 failed to timely impair the value of its Think Holdings investments; (3) as a result, the outstanding loans receivable and accounts receivable due from Think Holdings and Think Global were uncollectible; (4) as such, the Company's financial statements were misstated and its financial results were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); and (5), as a result, the Company's financial statements were materially false and misleading at all relevant times.
On June 22, 2011, the Company disclosed that a material charge was required under GAAP applicable to Ener1 related to the loans receivable of Think Holdings and accounts receivable of Think Global held by Ener1, based on the announcement by Think Global that, following an extended and ultimately unsuccessful search for long-term financing, it would be filing for bankruptcy proceedings in the Norwegian courts on June 22, 2011. Ener1 estimated the amount of the charge would be $35.4 million, subject to change to the extent that the Company received any recovery as a result of the liquidation of Think Global, but any recovery, to the extent it occurred, would not likely be significant.
On this news, shares of Ener1 declined $0.07 per share, more than 5%, on unusually heavy volume, and further declined $0.16 per share, or 12.4%, to close on June 23, 2011, at $1.13 per share, also on unusually heavy volume.
Subsequently, on August 15, 2011, Ener1 disclosed that the Company's financial statements for the year ended December 31, 2010 and for the quarterly period ended March 31, 2011 should no longer be relied upon and should be restated. The determination was made following an assessment of certain accounting matters related to the loans receivable owed to Ener1 by Think Holdings and accounts receivable owed to Ener1 by Think Global held by the Company, and the timing of the recognition of the impairment charge related to the Company's investment in Think Holdings originally recorded during the quarter ended March 31, 2011.
On this news, shares of Ener1 declined $0.33 per share, or 42.31%, to close on August 16, 2011, at $0.45 per share, on unusually heavy volume.
