NEW YORK, April 11, 2007 (PRIME NEWSWIRE) -- Harwood Feffer LLP today announced that a class action suit has been commenced on behalf of all persons who purchased the common stock of Arotech Corp. (Nasdaq:ARTX) ("Arotech" or the "Company") between March 31, 2005 and November 14, 2005, both dates inclusive (the "Class Period").
The action is pending in the United States District Court for Eastern District of Michigan, and names as defendants, the Company as well as certain senior officers and directors. A copy of the complaint can be obtained from the Court or can be viewed on Harwood Feffer web site at www.hfesq.com.
The Complaint charges defendants with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the Complaint alleges that, during the Class Period, the defendants issued materially false and misleading statements regarding the Company's business, management practices, systems and controls, and financial results. Throughout the Class Period, defendants had represented that the Company was meeting or exceeding guidance and could foreseeably achieve sustained year-over-year quarterly revenue growth as high as 40%.
On November 14, 2005, Arotech stunned investors with its announcement that the Company was operating well below expectations and that Arotech had significantly under-reserved for its impaired assets. The day following the announcement, on November 15, 2005, the price of Arotech stock plummeted almost 27% in heavy trading volume.
If you are a member of the class described above, you may, not later than June 5, 2007, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Harwood Feffer, or other counsel of your choice, to serve as your counsel in this action.
Harwood Feffer has taken a leading role in many important actions on behalf of defrauded shareholders, employee investors and consumers and is responsible for hundreds of millions of dollars in recoveries. The Harwood Feffer website (www.hfesq.com) contains detailed information regarding this matter and additional information about the firm.
NOTICE: Although Harwood Feffer has not filed an action against the defendants, you may view a copy of the initial Complaint, find more information about this and other matters, and obtain information about your rights by visiting the firm website (www.hfesq.com) or by contacting Jeffrey M. Norton at 877-935-7400 (ext. 286), Tanya Korkhov (ext. 207) or another firm representative.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca