reportedly caused the embarrassing Consumer Reports test of a Fisker Automotive Karma EVs. Their stock has declined from a high of over $20 to 87 cents yesterday. Now, they are being sued by investors in a class action lawsuit. Don't be surprised to see this company belly up before the end of 2012.
A123 Systems – the taxpayer-funded electric vehicle battery manufacturer that famously shipped duds to Fisker Automotive, which caused one of its luxurious Karma EVs to shut down just before a Consumer Reports test – is now the defendant in an investor class action lawsuit and its stock has tanked to below $1.
Massachusetts-based A123 received more than $279 million in grants from the Department of Energy, most of it used to refurbish two plants in Livonia and Romulus, Mich., for the production of EV batteries. The company laid off 125 factory workers in November, lost $257.7 million in 2011 (including an $11.6 million write-down of its stake in Fisker), and announced it would spend $55 million to fix the defective batteries it delivered to Fisker and other customers. Meanwhile A123’s top executives received big raises and inflated parachutes should the company change ownership. Keep on reading...