SAN DIEGO, Sep 06, 2013 LawFuel.com – Best Law Firm Newswire & Marketing — Shareholder Rights Law Firm Johnson & Weaver, LLP is investigating if a securities violation was committed by Active Power, Inc., ACPW +2.65% when it misrepresented material facts about a partnership agreement they had entered into on April 30, 2013.
On April 30, 2013, Active Power announced that it had entered into a partnership agreement with Digital China Information Service Company Limited (DCITS). In the April 30, 2013 press release about this partnership, Doug Milner (President and CEO at Active Power) stated, “We are excited and proud to have the largest IT solutions provider in China partner with us to further extend our reach in the region and build upon the success we’ve had with some of China’s leading innovators in data center design.” Mr. Milner stated further, “Having a leading firm like DCITS, with its extensive IT experience and strong business relationships, join us as one of our China based partners further validates our product offerings and value proposition of unmatched power density, reliability, and total cost of ownership.”
On September 5, 2013, Active Power retracted these statements made in April. Shareholders were told that Active Power’s previously announced agreement in China is with Qiyuan Network System Limited (not DCITS).
Active Power’s management had discovered Qiyuan is neither an affiliate nor a subsidiary of Digital China Information Service Company Limited (DCITS). On this news, Active Power’s stock dropped 14% the next trading day. This investigation will determine whether shareholders were harmed by the incorrect statements and outlook presented in April 2013.
If you are an Active Power shareholder and are interested in learning more about the investigation or your legal rights and remedies, please contact lead analyst Jim Baker ([email protected]) at 619-230-0063.
Johnson & Weaver, LLP is a nationally recognized shareholders’ rights law firm. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com.