Class Action Filed Against Arotech Corp.
The first class action lawsuit has been filed against Arotech Corp. on the behalf of investors who had stock in Arotech Corp. between March 31, 2005 and November 14, 2005. Arotech and its officers and directors have been accused of creating misleading and false statements that caused investors to believe that it was meeting or exceeding profit expectations. However, over this time period, Arotech actually was acquired by Armour of America for $22 million, which was not a part of any plan.
KGS Reveals Initial Filing of Shareholder Securities Fraud Class Action Lawsuit Against Arotech
Several weeks after Arotech went through a $17 million debt conversion, investors realized that they likely were suffering major losses. Arotech is accused of having told investors of the company's financial struggles too late. As a result of Arotech's disclosures about its financial health, the following day, shares of Arotech fell by almost 27 percent.
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KGS Announces Initial Filing of Shareholder Securities Fraud Class Action Lawsuit Against Arotech Corporation