This class action lawsuit on behalf of purchasers of the common stock of Ability, Inc. (NASDAQ: ABIL) from September 8, 2015 through April 29, 2016, inclusive (the “Class Period”) filed in 2016. The lawsuit seeks to recover damages for Ability investors under the federal securities laws.
According to the lawsuit, throughout the Class Period defendants issued false and misleading statements to investors and/or failed to disclose that: (1) Ability materially overstated its income by failing to account for commissions; (2) Ability materially overstated its operating results by improperly recognizing revenue on multiple element sales transactions; (3) Ability has material weaknesses in its internal controls; (4) as a result of the foregoing, Ability’s financial statements for the years ending December 31, 2013 and 2014 were materially false and misleading and not prepared in accordance with U.S. Generally Accepted Accounting Principles. The suit claims that investors were damaged as a result of the alleged fraud.
The investors in this class action are represented by Cohen Milstein Sellers & Toll PLLC.