Top Trial Firm Cohen, Placitella & Roth, PC Investigating Active Power, Inc., for Misrepresentation of Strategic Partner
By: CPR @ Apr 03, 2014
Cohen, Placitella & Roth, PC is investigating claims on behalf of investors who purchased Active Power, Inc. (“Active Power” or the “Company”) (Nasdaq: ACPW) stock between April 30, 2013 and September 5, 2013, inclusive. The investigation concerns whether Active Power and certain of its officers and/or directors disseminated material false and misleading information to investors in violation of Sections 10(b), and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, promulgated thereunder.
Active Power designs, manufactures, and services uninterruptible power supply products and modular infrastructure solution products that provide electrical power continuity and integrated infrastructure platforms for data centers and other mission-critical applications. On April 30, 2013, Active Power announced that it had broadened its market reach in Asia “with the addition of Digital China as one of our strategic distribution partners.” Its relationship with Digital China, the Company disclosed, would allow it to increase its revenues and profitability, adding that “[w]e have already engaged with Digital China on large data center projects for which we anticipate field product deployment later this year.” On September 6, 2013, after the close of trading, the Company retracted its guidance, citing disappointing results from the distribution relationship in China. The Company attributed the poor results to its having “previously announced in error that a partnership agreement with Digital China Information Service Company Limited was entered into on April 30, 2013.” The Company added that “. . .the company’s previously announced agreement in China is with Qiyuan Network System Limited, which the company’s management discovered[,] is neither an affiliate nor a subsidiary of Digital China Information Service Company Limited.” On this news, shares of Active Power stock fell over 13 percent, dropping from a close of $3.50 per share on September 5, 2013, to close at $3.02 per share on September 6, 2013.
If you have any information on Active Power’s guidance or its relationship with Digital China or you wish to discuss what rights you may have related to a loss in your investment in Active Power, please contact Eduardo Texidor Jr. at [email protected] or, toll free, at 1-215-567-3500. For those investors inquiring via email, please be sure to include “Active Power” in the subject line, the number of shares purchased, and your mailing address and telephone number.
Since 1973, Cohen, Placitella & Roth, PC has been recognized as one of the premier trial law firms in the country. The firm has extensive experience in prosecuting securities litigation involving violations of the federal securities laws, state law derivative actions and mergers and acquisitions cases, representing institutional investors such as public pension plans and union pension funds as well as individual shareholders suffering substantial investment losses due to corporate misconduct. LexisNexis Martindale-Hubbell® annually reports Cohen, Placitella & Roth’s peer rating-the highest AV® – “a testament to professional excellence.” Since the inauguration of its “Best Law Firms”‘ edition in 2010, U.S. News and World Report has annually listed Cohen, Placitella & Roth’s as one of the top-tier class action law firms in the country.
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