Canadian Solar Inc. Summary: According to a press release dated June 4, 2010, the complaint was filed in the United States District Court for the Southern District of New York against Canadian Solar and certain of its officers and directors for violations of federal securities laws. The complaint alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose: (1) that with respect to sales to certain customers, it was uncertain whether the Company would receive full cash payments; (2) that certain goods were subsequently returned after the quarter end; (3) that, as a result, the Company's financial results were overstated during the Class Period; (4) that the Company lacked adequate internal and financial controls; and (5) that, as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On June 1, 2010, after the market closed, the Company disclosed that it was postponing the release of its full financial results for the first quarter ended March 31, 2010, as a result of the commencement of an investigation by the Audit Committee of the Company's Board of Directors. The Company disclosed that the investigation was launched after it received a subpoena from the United States Securities and Exchange Commission requesting documents relating to, among other things, certain sales transactions in 2009. The Company also disclosed that it may revise its net revenues numbers for the 2009 fiscal fourth quarter.
The next day, as a result of this news, shares of Canadian Solar declined $1.69 per share, or 14.25%, to close on June 2, 2010, at $10.17 per share, on unusually heavy volume.
Similar, purported class action complaints have been filed in the U.S. District Courts for the Southern District of New York and the Northern District of California.
According to the Opinion signed by Judge Robert W. Sweet on December 22, 2010, the CSIQ Investor Group is appointed to serve as lead plaintiff, Hagens Berman Sobol Shapiro LLP is appointed lead counsel, Harry Tabak is appointed co-lead plaintiff and Berger & Montague, P.C., and Klafter Olsen & Lesser LLP are appointed co-lead counsel. Six putative class actions are also consolidated under a single action. On March 11, 2011, the lead plaintiffs filed a Consolidated Class Action Complaint. The defendants have responded by filing a motion to dismiss on May 13, 2011. The motion is currently pending before the Court.
On March 30, 2012, the Court issued the Opinion granting defendants' motion to dismiss. The complaint was dismissed with leave granted to replead within 20 days. On April 19, 2012, plaintiffs filed their amended complaint.
On March 27, 2013, the Court issued an Opinion granting the Defendants' motion to dismiss with prejudice. On April 26, Plaintiffs filed Notice of their appeal of the above Opinion.
SIC Code: 3674
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