Suntech Faces Class-Action Lawsuit From Shareholders

Posted by SI Staff on August 13, 2012 No Comments
Categories : New & Noteworthy

The Law Offices of Howard G. Smith says a class-action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of those who purchased shares from Suntech Power Holdings Co. Ltd. between August 18, 2010, and July 30, 2012.

The complaint charges Suntech and its officers with violations of federal securities laws by making false and/or misleading statements and failing to disclose material adverse facts about Suntech's business, operations and prospects.

Specifically, the complaint alleges that the defendants made false and/or misleading statements and failed to disclose that Suntech had not been pledged 560 million euros in German government bonds from GSF Capital Pte Ltd. in connection with its May 2010 financing arrangement with the China Development Bank; that the company lacked internal and financial controls; and that, as a result, the company's financial statements were materially false and misleading.

The law firm indicated last month that it would be filing this suit, after Suntech revealed that it may have been a victim of fraud and was investigating the GSF investment. Suntech said it suspects that the collateral related to the security interest may not have existed.

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