According to a law firm press release, the complaint alleges that defendants failed to disclose problems MEMC was encountering at its production facilities in Italy and Texas and that because of such production issues the Company's financial results for the quarter ended June 30, 2008 would be below target.
In fact, as alleged in the Complaint, on July 23, 2008, the Company first disclosed that in early June 2008 there was a premature failure of a relatively new heat-exchanger at the Company's Merano, Italy facility which caused second quarter polysilicon output to be reduced by approximately 5%. As further alleged, at approximately the same time, on June 13, 2008, the Company's Pasadena, Texas production facility had to be significantly shut down for approximately a week
because of a fire. However, as alleged, defendants failed to disclose these material production problems to investors and the impact they would have on the Company's financial results until July 23, 2008. And, upon these revelations, it is alleged the price of MEMC shares declined 22%, from $53.80 per share to $42.23 per share
on much heavier than usual trading volume.
On December 12, 2008, an Order of consolidation, appointment of lead counsel and lead plaintiff were entered by the court.
On February 23, 2009, a Consolidated Amended Class Action Complaint For Violations Of The Federal Securities Laws was filed with the court.
On March 08, 2010, a Memorandum and Order granted defendants' motion to dismiss plaintiff's consolidated amended complaint. It was further ordered that defendants' motion for oral argument was denied as moot. Subsequently, another order stated that this consolidated action was dismissed, with prejudice, for failure to state a claim upon which relief may be granted, Fed.R.Civ.P. 12(b)(6), and for failure to allege fraud with particularity, Fed.R.Civ.P. 9(b)
On March 31, 2010, a notice of appeal was filed in the case by the plaintiff.
According to the Opinion and Judgment from the U.S. Court of Appeals entered on June 17, 2011, it is hereby ordered and adjudged that the judgment of the district court that this case be dismissed with prejudice for failure to state a claim is affirmed in accordance with the opinion of this Court.