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Re: None

Friday, 06/21/2019 8:21:56 PM

Friday, June 21, 2019 8:21:56 PM

Post# of 269
ABILITY INC.



As previously disclosed, on July 3, 2018, the Securities and Exchange Commission (“SEC”) issued Wells notices to Ability Inc. (the “Company”) and two of its officers, directors and controlling shareholders, Anatoly Hurgin and Alexander Aurovsky, in connection with the previously disclosed SEC investigation. On August 10, 2018, the Company and Messrs. Hurgin and Aurovsky made Wells submissions in response to the Wells notices. Subsequently, on June 18, 2019, a civil complaint was filed by the SEC against the Company, its subsidiary, Ability Computer & Software Industries Ltd, (“ACSI”), and Messrs. Hurgin and Aurovsky in the United States District Court for the Southern District of New York . The complaint is a civil enforcement action and alleges violations of the antifraud provisions of the Securities Act of 1933 and Securities Exchange Act of 1934 (the “Exchange Act”) and the proxy solicitation provisions of the Exchange Act by Messrs. Hurgin and Aurovsky, ACSI and the Company in connection with the Company’s December 2015 transaction with Cambridge Capital Acquisition Corporation. The SEC seeks injunctive relief, disgorgement, and civil penalties and in addition, with respect to Mr. Hurgin only, an officer and director bar.



Since the filing of the Wells notices, and despite significant disagreements with the Staff of the SEC’s Division of Enforcement (the “Staff”) over the facts and the applicable law, the Company and Messrs. Hurgin and Aurovsky have been engaged in active discussions with the Staff to settle the foregoing matters. Prior to the filing of the civil action, the Company and Messrs. Hurgin and Aurovsky were in the final stages of reaching a settlement and the Company and Messrs. Hurgin and Aurovsky continue to seek to settle the action. However, there can be no assurance that a settlement will occur.