Ability Inc (NASDAQ: ABIL) Investor Securities Class Action Lawsuit 05/25/2016

You must submit the settlement "Proof" form attached below, in order to participate in this settlement. There is a strict deadline of October 16, 2018 by which all claims must be submitted. The instructions for submitting are included in the "Proof" and the "Notice" files attached below for your download. DO NOT SEND THE FORMS TO THE SHAREHOLDERS FOUNDATION, FOLLOW THE DIRECTIONS IN THE "PROOF".

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Company Name(s): 
Ability
Case Name: 
Ability Shareholder Class Action Lawsuit 05/25/2016
Case Status: 
Settlement Proposed
Affected Securities
NASDAQ: ABIL
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
05/25/2016
Class Period Begin: 
09/08/2015
Class Period End: 
05/02/2016
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
07/25/2016
Date Settled: 
05/18/2018
Settlement Amount: 
$3,000,000
Deadline to Participate in Settlement: 
10/16/2018
Settlement Notice: 
Settlement Proof: 
Summary: 

The settlement includes all persons who, prior to May 2, 2016, purchased or otherwise acquired Ability Inc common stock issued pursuant or traceable to the Company’s November 25, 2015 Registration Statement in a domestic transaction.

May 18, 2018 - The court preliminarily approved the settlement.

April 25, 2018 - Parties filed a stipulation of settlement.

June 15, 2017 - The lead plaintiffs filed a second amended consolidated complaint on behalf of investors who purchased Ability Inc (NASDAQ: ABIL) common shares issued pursuant or traceable to the November 25, 2015 Registration Statement, and were damaged thereby; and on behalf of all those who purchased or otherwise acquired Ability Inc (NASDAQ: ABIL) common stock between September 8, 2015 and May 2, 2016. The lead plaintiffs allege that the defendants violated the Securities Act of 1933 and the Securities Exchange Act of 1934 by issuing false and misleading statements between September 8, 2015 and May 2, 2016.

April 28, 2017 - The lead plaintiffs filed an amended complaint.

December 8, 2016 - Lead plaintiffs and lead counsel were appointed and all cases were consolidated.

July 25, 2017 - Lead plaintiff motions were filed.

May 25, 2016 - An investor in shares of Ability Inc (NASDAQ: ABIL) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Ability Inc in connection with certain allegedly false and misleading statements made between September 8, 2015 and April 29, 2016.

According to the complaint the plaintiff alleges on behalf of purchasers of Ability Inc (NASDAQ: ABIL) common shares between September 8, 2015 and April 29, 2016, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between September 8, 2015 and April 29, 2016 the defendants issued false and misleading statements to investors and/or failed to disclose that Ability materially overstated its income by failing to account for commissions, that Ability materially overstated its operating results by improperly recognizing revenue on multiple element sales transactions, that Ability has material weaknesses in its internal controls and that 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.

On May 2, 2016, Ability Inc (NASDAQ: ABIL) released an annual report on Form 20-F disclosing that it would be restating its financial results for the two years ending December 31, 2014. Ability Inc admitted that it improperly allocated and timed its revenue recognition, and failed to recognize commissions due to a third party.

Shares of Ability Inc (NASDAQ: ABIL) declined to as low as $2.77 per share on May 6, 2016.