May 10th, 2007
Shepherd, Finkelman, Miller & Shah, LLC (“SFMS”) announces that it has filed a lawsuit seeking class action status in the United States District Court for the Eastern District of New York, No. 07 Civ. 1914 (RJD), on behalf of all persons (the “Class”) who purchased the common stock of Arotech Corporation (Nasdaq: ARTX) (“Arotech” or the “Company”) between November 9, 2004 and November 14, 2005, inclusive (the “Class Period”). A copy of the Complaint may be obtained from the Court, or you can call our offices toll free at either 866/540-5505 or 877/891-9880 to speak with an attorney regarding this matter and we will send you a copy of the Complaint.
The Complaint alleges that Arotech and officers Robert S. Ehrlich, Steven Esses and Avihai Shen (“Defendants”) violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market throughout the Class Period that had the effect of artificially inflating the market price of the Company’s stock. The Complaint alleges that Defendants misrepresented and/or omitted to disclose, despite a duty to do so, among other things, that the Company’s recent acquisitions, particularly its Armour of America subsidiary, were not fully integrated and were not adding to the Company’s revenues. It was only after the Company announced the completion of a $17.5 million convertible debt refinancing transaction on September 30, 2005, which provided the Company with much-needed working capital, that the full extent of the Company’s under-performance was revealed.
On November 14, 2005, after the markets closed, the Company disclosed that it would take an impairment charge of almost $9 million principally related to its Armour of America subsidiary. On this news, Arotech’s stock plummeted almost 27% on November 15, 2005, closing at $6.16 per share, down from the previous day’s close of $8.40 per share. Shortly thereafter, Ehrlich was removed from his position as President of the Company, and Shen was terminated as the Company’s Chief Financial Officer.
If you purchased Arotech stock between November 9, 2004 and November 14, 2005, inclusive, you may qualify to serve as lead plaintiff on behalf of the Class. All motions for appointment as lead plaintiff must be filed with the Court by no later than June 5, 2007. Any member of the proposed Class may move the Court to serve as lead plaintiff in this action through counsel of his or her choice, or may remain an absent Class member. There are certain legal requirements to serve as lead plaintiff, which we would be pleased to discuss with you. If you have any questions or would like to discuss this case, please e-mail or telephone James E. Miller at email@example.com or 1-866-540-5505 or James C. Shah at firstname.lastname@example.org or 1-877-891-9880.