According to the law firm press release, the Complaint charges Suntech and certain of the Company’s executive officers with violations of federal securities laws. Suntech, a solar energy company, engages in the design, development, manufacture and marketing of photovoltaic products. The Complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about Suntech’s business, operations and prospects. Specifically, the Complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose: (1) that Suntech had not been pledged EURO 560.0 million in German government bonds from GSF Capital Pte Ltd., in connection with its May 2010 financing arrangement 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.
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, the parent of the general partner of Global Solar Fund, S.C.A, Sicar (“GSF”), an investment fund created to make investments in private companies that own or develop projects in the solar energy sector that had 80% of its share equity owned by Suntech. 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 EURO 560.0 million purportedly pledged to the Company may not have ever existed. The Company further disclosed that it had filed legal claims against relevant parties in multiple jurisdictions to assert control of GSF and its assets.
On this news, shares of the Company declined $0.23 per share, or 14.65%, to close on July 30, 2012, at $1.34 per share, on unusually heavy volume, and further declined another $0.21, or 15.67%, to close on July 31, 2012, at $1.13 per share, also on unusually heavy volume.
On November 14, 2012, an Order was issued by the Court consolidating the cases under the caption: Bruce v. Suntech Power Holdings Company, Inc.; and under the docket number: 12-cv-0406. Also on the same day, there was an Order Appointing Suntech Investor Group as Lead Plaintiff.
On October 14, 2013 an involuntary petition for relief under Chapter 7 of the U.S. Bankruptcy Code was filed against Suntech Power Holdings Co., Ltd. by four alleged creditors of the Company. It was further noted that the filing of the Involuntary Petition operates as a stay of “the commencement or continuation, including the issuance or employment of process, of a judicial, administrative, or other action or proceeding against the debtor that was or could have been commenced before the commencement of the case under this title, or to recover a claim against the debtor that arose before the commencement of the case under this title.”
On August 14, 2015, the parties entered into a Stipulation of Settlement. This Settlement was preliminarily approved by the Court on October 8.