Another Green Energy Investment Going South

When Barack Obama, Steven Chu, and Jennifer Granholm team up all things are possible. Imagine Michigan being the battery capital of North America! Hell it maybe the battery capital of the whole damn universe! Things have soured a bit since the heady days of 2010. The stock of A123 Systems rebounded nicely today to close at 95 cents. Yesterday it hit its all time low of 82 cents after shareholder filed a class action suit against the company.
The suit stems from A123's March 26 announcement that it must spend about $55 million to replace battery modules and packs that might be defective. The suit alleges that A123 had withheld that information and investors worry that the company can't come up with the money to fund the replacements. Five customers including Fisker Automotive, the company's biggest client, received parts that could have had defective cells. The stock is down 55 percent this year, and has lost more than 90 percent of its value since its initial public stock offering, which priced it at $13.50. Go team Obama!