| Company: | Arotech Corp. |
| Ticker Symbol: | NASD: ARTX |
| Class Period: | March 31, 2005 to November 14, 2005 |
| Date Filed: | Apr-06-07 |
| Lead Plaintiff Deadline: | Jun-04-07 |
| Court: | Eastern District, MI |
| Allegations: |
A class action lawsuit has been filed in the United States District Court for the Eastern District of Michigan, on behalf of shareholders who purchased or acquired the common stock of Arotech Corp. ("Arotech" or the "Company'') (NASDAQ: ARTX) between March 31, 2005 and November 14, 2005 (the "Class Period").
Arotech and certain of its officers and directors are charged with issuing a series of materially false and misleading statements in violation of Section 10(b) and 20(a) of the Securities Exchange Act and Rule 10b-5 promulgated thereunder. Throughout the Class Period, Arotech conditioned investors to believe that the Company was meeting or exceeding guidance and could foreseeably achieve sustained year-over-year quarterly revenue growth as high as 40%.
Unbeknownst to investors, however, throughout the Class Period, Arotech suffered from a host of adverse conditions that negatively impacted its business and caused the Company to fail to maintain its financial statements and reports in accordance with GAAP and SEC rules, including, that: (1) the integration of Armour of America, acquired by Arotech in August 2004 for approximately $22 million, was not proceeding according to plan; (2) profitability was overstated as a result of defendants' failure to write-down impaired assets and record rising impairment costs; and (3) defendants failed to maintain an adequate system of internal operational or financial controls necessary to operate the Company.
It was only on November 14, 2005 -- only weeks after defendants completed a $17 million offering of debt convertible into shares of Company stock -- that investors learned the truth about the Company. At that time, defendants belatedly disclosed that Arotech was operating well below plan and that it would be forced to take significant asset impairment charges. As a result of these disclosures, the following day, shares of the Company declined almost 27% in very heavy trading volume.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
Arotech and certain of its officers and directors are charged with issuing a series of materially false and misleading statements in violation of Section 10(b) and 20(a) of the Securities Exchange Act and Rule 10b-5 promulgated thereunder. Throughout the Class Period, Arotech conditioned investors to believe that the Company was meeting or exceeding guidance and could foreseeably achieve sustained year-over-year quarterly revenue growth as high as 40%.
Unbeknownst to investors, however, throughout the Class Period, Arotech suffered from a host of adverse conditions that negatively impacted its business and caused the Company to fail to maintain its financial statements and reports in accordance with GAAP and SEC rules, including, that: (1) the integration of Armour of America, acquired by Arotech in August 2004 for approximately $22 million, was not proceeding according to plan; (2) profitability was overstated as a result of defendants' failure to write-down impaired assets and record rising impairment costs; and (3) defendants failed to maintain an adequate system of internal operational or financial controls necessary to operate the Company.
It was only on November 14, 2005 -- only weeks after defendants completed a $17 million offering of debt convertible into shares of Company stock -- that investors learned the truth about the Company. At that time, defendants belatedly disclosed that Arotech was operating well below plan and that it would be forced to take significant asset impairment charges. As a result of these disclosures, the following day, shares of the Company declined almost 27% in very heavy trading volume.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
