The class action was commenced on behalf of purchasers of GT Solar International, Inc. common stock pursuant or traceable to the Company's false and misleading Registration Statement and Prospectus issued in connection with its July 23, 2008 initial public offering.
The complaint charges GT Solar and certain of its officers and directors with violations of the Securities Act of 1933. GT Solar and its subsidiaries provide manufacturing equipment and "turnkey" manufacturing solutions to the photovoltaic industry worldwide.
The complaint alleges that on July 23, 2008, GT Solar accomplished its IPO of 30.3 million shares at $16.50 per share for net proceeds of $500 million, pursuant to the Registration Statement (the "Offering"). The proceeds from the Offering went to GT Solar Holdings, LLC ("GT Solar Holdings"). GT Solar Holdings intended to use the net proceeds it received via the Offering to make a distribution to its shareholders. In its first day of trading, GT Solar closed at $14.59 per share on July 24, 2008.
The following day, on July 25, 2008, before the market opened, LDK Solar Co., LTD ("LDK"), GT Solar's largest customer, issued a press release announcing that it had signed a contract to purchase production equipment from one of GT Solar's competitors. On this news, GT Solar's stock price declined to as low as $9.30 per share before closing at $12.59 per share on July 25, 2008, losing 13% of its value
in its second day of trading.
According to the complaint, the Registration Statement failed to disclose the true extent of the risks surrounding the Company's relationship with LDK, including the fact that the Company was at imminent risk of losing out on a contract for future orders from LDK due to delays in shipping production equipment to LDK.
On August 13, 2008, a potential consolidation order was entered. On October 3, 2008, an Order of Consolidation was entered consolidating all other pending actions On December 11, 2008, another Order of Consolidation was entered by the court. On December 22, 2008, a Consolidated Class Action Complaint was filed. On February 5, 2009, the defendants filed a motion to dismiss the Consolidated Class Action Complaint. Judge Joseph N. Laplante denied the motion on October 7, 2009. The action is now in discovery proceedings.
On October 4, 2010, the plaintiff requested that the Court dismiss this complaint pursuant to Fed. R. Civ. P. 41(a)(2), without prejudice by way of Voluntary dismissal.