COLCHESTER, Conn., July 13, 2006 (PRIMEZONE) -- On July 13, 2006, Scott+Scott, LLC, filed a class action against Ionatron, Inc. ("Ionatron" or the "Company") (Nasdaq:IOTN) and certain officers and directors in the U.S. District Court for the District of Arizona. The action is on behalf of Ionatron securities purchasers during the period June 27, 2005, through May 10, 2006, inclusive (the "Class Period"), for violation of the Securities Exchange Act of 1934. Ionatron develops and manufactures directed-energy weapons based on its Laser Induced Plasma Channel ("LIPC") technology. The complaint alleges that defendants made false and misleading statements and material omissions regarding the battle field-readiness of its weapons. As a result, the price of the Company's securities was inflated during the Class Period, thereby harming investors.
If you purchased Ionatron securities during the Class Period and wish to serve as a lead plaintiff in the action, you must move the Court no later than sixty days from today. Any purported class member may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott (scottlaw@scott-scott.com, 800/404-7770, 860/537-5537) or visit the Scott+Scott website, www.scott-scott.com, for more information. There is no cost or fee to you.
According to the complaint, on June 27, 2005, the Company heralded the development of a field-deployable vehicle incorporating its counter-Improved Explosive Device ("IED") technology, also known as the Joint IED Neutralizer ("JIN"). The Company announced that it planned to sell this counter-IED vehicle to the U.S. Government. Despite the Company's claim that the vehicle would be field-deployable, the complaint alleges that the Company actually concealed that the vehicle was at best an improvisation, incapable of meeting U.S. Government specifications for field-readiness. Meanwhile, Company insiders sold over 1.5 million shares of their Ionatron stock for proceeds of $18.4 million.
Then, as the complaint states, on May 10, 2006, the Company finally revealed to investors that the JIN vehicle actually was not "deployment-ready" in that the U.S. Government determined that the vehicle lacked the ruggedness and capabilities necessary for field deployment. As a result of the shocking news, the price of Ionatron stock plummeted, losing $1.58 or 12.3%, to close on May 11, 2006, at $11.25.
The plaintiff is represented by Scott+Scott, a firm with significant experience in prosecuting investor class actions. The firm dedicates itself to client communication and satisfaction and currently is litigating major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, charities, foundations, individuals and other entities worldwide.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.