Suntech Shareholders Launching Investigation Into Potential Fraud

Posted by SI Staff on July 31, 2012 No Comments
Categories : New & Noteworthy

After Suntech's announcement earlier this week that it may have been the victim of fraud, a law firm now says it is investigating potential claims against the company concerning possible violations of federal securities laws.

The investigation, led by the Law Offices of Howard G. Smith, focuses on allegations that certain statements issued by the company between August 18, 2010 and July 30, 2012, regarding Suntech's business, operations and financial condition were false and misleading.

Specifically, the investigation relates to Suntech's July 30, 2012, disclosure that the company is conducting an investigation into a security interest it received in connection with its investment in Global Solar Fund SCA., Sicar.

As Suntech noted in its announcement earlier this week, the security interest – totaling 560 million euros – may not actually exist. Following this news, Suntech's stock declined $0.23 per share, or 14.65%, to close on July 30 at $1.34 per share, on unusually heavy volume, the law firm says.

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