NEW YORK, Aug. 9, 2012 /PRNewswire/ -- Bernstein Liebhard LLP today announced that a securities class action lawsuit has been commenced in the United States District Court for the Northern District of California on behalf of a class of purchasers (the "Class") of Suntech Power Holdings Co. Ltd. (STP) ("Suntech" or the "Company") securities between August 18, 2010 and July 30, 2012 (the "Class Period").
Suntech, a Cayman Islands corporation headquartered in China, is one of the leading PV solar manufacturers in the world. The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company's business operations, financial condition and prospects. Specifically, the Complaint alleges (1) that Suntech had not been pledged €560.0 million in German government bonds from Global Solar Fund Capital Pte Ltd., in connection with its May 2010 financing agreement with the China Development Bank; (2) that the Company lacked internal and financial controls; and (3) that, as a result, the Company's financial statements were materially false and misleading at all relevant times. As a result of defendants' false and misleading statements, the Company's stock traded at artificially inflated prices during the Class Period.
According to the Complaint, in May 2010, the Company entered into an arrangement in which it guaranteed payment obligations under finance facilities provided by China Development Bank to Solar Puglia II, S.ar.L, an investee company of Global Solar Fund, S.C.A., Sicar ("GSF"), in the amount of approximately €554.2 million. As security for the Company's obligations under the guarantee, Suntech purportedly received a pledge of €560.0 million in German government bonds from GSF Capital Pte Ltd., the parent of the general partner of GSF.
However, on July 30, 2012, the Company disclosed that it was conducting an investigation into the security interest that Suntech purportedly received in May 2010 from GSF Capital Pte Ltd. According to the Company, outside counsel that had been hired as part of Suntech's initiative to monetize its investment in GSF had noted certain facts and circumstances suggesting that the German government bonds in the amount of €560.0 million purportedly pledged to the Company may not have ever existed. On this news, shares of the Company declined over 14%, closing at $1.34 per share on July 30, 2012, on unusually high volume of over 4 million shares.
Plaintiffs seek to recover damages on behalf of all Class members who purchased or otherwise acquired Suntech securities during the Class Period. If you purchased or otherwise acquired Suntech securities during the Class Period, and either lost money on the transaction or still hold the shares, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than October 1, 2012.
A "lead plaintiff" is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
If you are interested in discussing your rights as a Suntech shareholder and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or [email protected].
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients. It has been named to The National Law Journal's "Plaintiffs' Hot List" in each of the last nine years.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Northern District of California.
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SOURCE Bernstein Liebhard LLP