LOS ANGELES, May 12, 2011 (GLOBE NEWSWIRE) -- Glancy Binkow & Goldberg LLP announces that all persons or entities who purchased or otherwise acquired the securities of Advanced Battery Technologies, Inc. ("ABAT" or the "Company") (Nasdaq:ABAT) between November 24, 2008 and March 29, 2011, inclusive (the "Class Period"), have until May 31, 2011 to move the Court to serve as Lead Plaintiff in the securities fraud class action lawsuit. The case filed by Glancy Binkow & Goldberg LLP, Connors v. Advanced Battery Technologies, Inc., et al., No. 11-cv-03098-CM, has been assigned to the Honorable Colleen McMahon, United States District Judge for the Southern District of New York.
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201‑9150 or Toll Free at (888) 773‑9224, by email to shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com.
The Complaint charges ABAT and certain of its executive officers with violations of federal securities laws. ABAT develops, manufactures and distributes rechargeable polymer lithium-ion batteries. The Complaint alleges that throughout the Class Period defendants misrepresented and/or failed to disclose that: (1) ABAT's claimed distribution relationships with certain manufacturers of electric motorcycles and scooters were false; (2) the Company's reported financial statements were grossly inflated by including gross profit margins which were unrealistic for similar companies in its industry; (3) the Company paid $1.5 million to acquire a company that is non-existent; (4) the Company paid $20 million to purchase a company, but failed to disclose the related-party nature of the transaction; (5) the Company paid $22 million to acquire Wuxi ZQ – a manufacturer of electric vehicles – without disclosing that it was a bailout of a related company; (6) ABAT misrepresented that it owned a Company subsidiary when it did not, or the Company failed to disclose that it entered into a related party transaction with the Company's Chairman and CEO which resulted in the owner of that subsidiary being the Chairman and CEO, and not ABAT; (7) the Company lacked adequate internal and financial controls; and (8) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.
On March 30, 2011, Varient View Research published a report claiming, among other things, that the Chairman transferred ownership of ABAT's key subsidiary to himself without explanation or compensation, that ABAT leads investors to think that it makes cutting-edge electric cars, when in fact it produces cheap scooters and bicycles, and several of ABAT's distribution relationships are non-existent.
As a result of this news, ABAT shares declined $1.50 per share, or nearly 43%, to close on March 30, 2011, at $2.01 per share, on unusually heavy trading.
The Private Securities Litigation Reform Act of 1995 ("PSLRA") requires the Court to appoint a "Lead Plaintiff" in this case. Any person or group who suffered a loss as a result of purchasing ABAT securities between November 24, 2008 and March 29, 2011, may ask the Court to be appointed as Lead Plaintiff, but must file a motion no later than the June 13, 2011 deadline.
Glancy Binkow & Goldberg LLP is a law firm with significant experience in prosecuting class actions, substantial expertise in actions involving corporate fraud, and is representing ABAT shareholders in this litigation.
If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201‑9150, Toll Free at (888) 773‑9224, by e‑mail to shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com.