After litany of lies, Israeli hacking firm Ability settles lawsuit for $3 million
Plagued by investor lawsuits and federal investigations over allegedly lying about products and finances, Israeli hacking company Ability Inc. recently settled out of court by paying $3 million to investors who say Ability’s executives have been misleading about their company’s finances from the start. Most of the allegations in the class action lawsuit are also violations of federal law, so it’s little surprise that Ability came under federal investigation last year for allegedly lying about products and finances. When asked about the current status of the investigation, the SEC declined to comment. Investigations of this nature tend to take years to complete. The settlement is a significant hit for a company with fast evaporating cash reserves and revenue — and little explanation as to why things have gone so badly. With just $3.6 million in cash left on their balance sheet, according to SEC filings, the clock is ticking. The company spent $8.4 million […]
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