According to a press release dated December 03, 2008, the complaint alleges that, during the Class Period, defendants made materially false and misleading statements about the Company’s financial condition and operating results. Specifically, defendants failed to disclose that JA Solar purchased from a subsidiary of Lehman Brothers Inc.(“Lehman Brothers”) a three month, $100 million note (the “Lehman note”) on or about July 9, 2008. At the time of this purchase, Lehman Brothers, which guaranteed the Lehman note, was under severe financial distress. According to the complaint, defendants failed to disclose: (i) that JA Solar had made a material, highly speculative investment in a subsidiary of Lehman Brothers, an entity that was then undergoing a credit crisis and under significant financial distress; (ii) that the value of JA Solar’s investment in the Lehman note had diminished considerably; and (iii) that, as a result of the foregoing, defendants’ positive statements concerning JA Solar’s financial performance, outlook and earnings guidance were materially false and misleading and without reasonable basis.
Ultimately, at the end of the Class Period, JA Solar wrote off its $100 million investment in the Lehman note. After JA Solar fully disclosed and recorded an impairment in the value of its investment in the Lehman note, on November 12, 2008, JA Solar’s stock closed at $2.38 per share, a price that represented a decline of more than 87% from the high during the three month Class Period.
On April 17, 2009, an order for consolidation of cases Nos. 08 Civ. 10475 and 08 Civ. 11366 were consolidated. The order also granted Bill Chen's motion for appointment as lead plaintiff and approval of lead plaintiff's selection of counsel.
On June 01, 2009, an amended complaint was filed by the lead plaintiff in this action.
On August 21, 2009, a second amended complaint was filed by the lead plaintiff in this action.
On May 17, 2010, the defendants' motion to dismiss was denied and the Clerk was directed to close Docket No. 47.
On January 28, 2011, a Settlement Agreement was submitted to the Court pursuant to Rule 23 of the Federal Rules of Civil Procedure and Rule 408 of the Federal Rules of Evidence. The agreement embodies a settlement made and entered into by the Settling Parties.
On February 18, 2011, an Order Preliminarily Approving Settlement and Providing for Notice of the hearing was issued by the Court.