HARTFORD, Conn., July 13, 2006 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the District of Arizona on behalf of all persons who purchased the publicly traded securities of Ionatron, Inc. ("Ionatron" or the "Company") (Nasdaq:IOTN) between June 27, 2005 and May 10, 2006, inclusive (the "Class Period").
The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements regarding the battle field-readiness of its weapons. Specifically, 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"). Ionatron 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.
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. On this news, the price of Ionatron stock plummeted, losing 12.3%, to close on May 11, 2006, at $11.25.
If you are a member of the class, you may, no later than September 11, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca