SHAREHOLDER UPDATE: Cohen Milstein Sellers & Toll PLLC Appointed Co-Lead Counsel in Securities Class Action Against Ability, ...
September 20 2016 - 2:59PM
Business Wire
Investors Are Encouraged to Contact the Firm for Updates
Regarding the Status of the Litigation
Cohen Milstein Sellers & Toll PLLC (“Cohen Milstein”)
announces that it has been appointed Co-Lead Counsel, together with
Glancy Prongay & Murray LLP, in the securities class action
against Ability, Inc. (formerly, Cambridge Capital Acquisition
Corporation) (“Ability” or the “Company”) (NASDAQ: ABIL) and
certain executive officers of the Company, currently pending in the
United States District Court for the Southern District of New York,
In re Ability, Inc. Securities Litigation, No. 16-cv-03893-VM.
On September 8, 2015, publicly traded Cambridge Capital
Acquisition Corporation (NASDAQ: CAMB; CAMBW; CAMBU) (“Cambridge”)
announced the execution of a definitive agreement under which
Cambridge would merge with privately-held Ability Computers &
Software Industries Ltd. (“ACSI”). On December 23, 2015, Cambridge
held a special meeting of its shareholders to vote on the proposed
merger with ACSI; and, following a majority vote in favor of the
merger, Cambridge announced that the merger with ACSI 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 under the symbols ABIL and ABILW, respectively.
Investors that held Cambridge/Ability stock or warrants prior
to the December 23, 2015 special shareholder meeting are encouraged
to contact S. Douglas Bunch, Esq. of Cohen Milstein at 202-408-4600
to discuss the status of the case and the claims in the
litigation.
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, on heavy trading volume.
The complaint filed in this lawsuit alleges 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.
If you purchased shares of Cambridge or Ability securities
during the Class Period of September 8, 2015 through April 29,
2016, inclusive, or if you have any questions concerning this case,
this announcement, or your rights or interests with respect to
these matters, or if you would like an update concerning the status
of this case, would like to learn more about the case, or have
information and wish to discuss these matters further, please
contact S. Douglas Bunch of Cohen Milstein, 1100 New York Avenue,
N.W., Fifth Floor, Washington, D.C., 20005, by telephone at
202-408-4600, by email at dbunch@cohenmilstein.com, or visit our
website at http://www.cohenmilstein.com. If you inquire by
email please include your mailing address, telephone number,
transaction date(s), and number of shares purchased.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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version on businesswire.com: http://www.businesswire.com/news/home/20160920006766/en/
Cohen Milstein Sellers & Toll PLLCS. Douglas Bunch,
202-408-46001100 New York Ave. NW, Fifth FloorWashington, D.C.,
20005dbunch@cohenmilstein.comhttp://www.cohenmilstein.com
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