BENSALEM, Pa. — The law firm of Howard G. Smith announced Tuesday that it had filed a class action lawsuit seeking to represent investors of the Massachusetts-based battery maker A123 Systems Inc. over a recent battery recall.

The suit was filed in the United States District Court for the District of Massachusetts.

The suit seeks to represent all persons or entities who purchased the common stock of A123 between Feb. 28, 2011 and March 23, 2012.

A123 and its subsidiaries, designs, develops, manufactures and sells rechargeable lithium-ion batteries and energy storage systems worldwide.

The lawsuit alleges that the company “issued materially false and misleading statements concerning the company’s operations and financial prospects.”

Specifically, the suit alleges that the company failed to disclose “severe manufacturing deficiencies at its Livonia, Michigan, manufacturing facility, which produced defective prismatic cells that resulted in premature failure of battery modules and packs.”

The company also failed to disclose the cost of the resulting battery recall, the suit says.

A123 announced March 25 that it would spend about $55 million to replace battery packs that had failed due to short circuits caused by misalingment of a welding machine during battery pack construction. The packs were used in the Fisker Karma and other electric vehicles.


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