HARTFORD, Conn., April 11, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard, 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 Eastern District of Michigan on behalf of all persons who purchased or otherwise acquired the publicly traded securities of Arotech Corp. ("Arotech" or the "Company") (Nasdaq:ARTX) between March 31, 2005 and November 14, 2005, inclusive, (the "Class Period").
The Complaint alleges that Arotech and certain of its officers and directors violated Federal Securities laws. Specifically, defendants misrepresented that Arotech would meet or exceed guidance and could foreseeably achieve sustained year-over-year quarterly revenue growth as high as 40%. Throughout the Class Period, Arotech suffered from a host of adverse conditions that negatively impacted its business including the following: (i) the integration of Armour of America, acquired by Arotech in August 2004 for approximately $22 million, was not proceeding according to plan; (ii) profitability was overstated as a result of defendants' failure to write-down impaired assets and record rising impairment costs; and (iii) defendants failed to maintain an adequate system of internal operational or financial controls necessary to operate the Company.
On November 14, 2005, only weeks after defendants completed a $17 million offering of debt convertible into shares of Company stock, defendants disclosed that Arotech was operating well below plan and that it would be forced to take significant asset impairment charges. As a result of this news, shares of Arotech declined almost 27% on the following trading day.
If you are a member of the class, you may, no later than June 5, 2007, 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 Izard, P.C. 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 Izard, P.C. toll-free at (800) 797-5499, or by e-mail at firm@snlaw.net, or visit our website: www.snilaw.com.