A guy who bought stock in A123 Systems sometime over the past year wants his money back, and then some.
In a lawsuit filed yesterday in US District Court in Boston, Scott Heiss charges the Waltham-based company, which makes large lithium batteries for auto manufacturers, knew about problems at a Michigan manufacturing plant well before it went public with them and that mean he bought stock at artificially high prices – the price tumbled after the news came out.
If the name “A123 Systems” sounds familiar, it should. Gov. Deval Patrick gave them $5 million of your money.
Governor Deval Patrick made an Earth Day stop in Hopkinton Thursday morning to award a $5 million loan to Watertown lithium-ion battery manufacturer A123 Systems…The company, A123 Systems, is based in Watertown but assembles large-scale battery systems in Hopkinton’s industrial park.
And what did we taxpayers get? A bunch of “eco-execs” who made themselves rich…and car batteries that can kill people:
Earlier this week, the company announced a recall of malfunctioning battery packs manufactured in Livonia, Mich. A123 makes the products for Fisker, Chevrolet and BMW electric cars. Consumer Reports flagged the potentially hazardous defect caused by faulty calibration earlier this month. The recall will cost upward of $55 million.
How do these green goof-ups keep happening? Could it possibly have something to do with the massive amount of campaign contributions A123 Systems execs make to President Obama, Sen. Kerry, Rep. Markey, etc?
Nah, that can’t be it…
UPDATE: But wait—there’s more!
The company which proudly held the rights to the world’s largest solar power project, the hilariously named Solar Trust of America ("STA"), filed for bankruptcy. And while one could say that the company’s epic collapse is more a function of alternative energy politics in Germany, where its 70% parent Solar Millennium AG filed for bankruptcy last December, what is relevant is that last April STA was the proud recipient of a $2.1 billion conditional loan from the Department of Energy, incidentally the second largest loan ever handed out by the DOE’s Stephen Chu.