September 17, 2018

Ability Inc. agreed to pay $3 million to investors to resolve a securities suit accusing the Israeli government contractor of making misleading financial statements during its bid to buy Cambridge Capital Acquisition Corp., according to a deal approved by a New York federal judge on Monday.

U.S. District Judge Victor Marrero granted final approval to the deal that will resolve a class action alleging Ability painted an inaccurately positive picture of the company’s financial state leading up to and after merging with Cambridge in 2015 that eventually led to a drop in stock price when the purported deceit was brought to light, according to court filings.

The shareholders are represented by S. Douglas Bunch, Daniel S. Sommers and Adam H. Farra of Cohen Milstein Sellers & Toll PLLC, Kara M. Wolke of Glancy Prongay & Murray LLP and Jacob Sabo of the Law Office of Jacob Sabo.

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