|  | | 2008 News and Press Releases | | |
DISMISSAL NEWS:
Investors Seek Class Status In LDK Solar Suit
Erin Marie Daly
Securities Law 360. August 29, 2008
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EXCERPT: Investors are fighting for class certification in a lawsuit alleging LDK Solar Co. Ltd. and its executives committed a “massive” securities fraud by inflating the value of the company’s inventory of raw materials and understating the costs of producing solar wafers, which are used in devices that convert sunlight into electricity. The plaintiffs said in court documents filed Thursday in the U.S. District Court for the Northern District of California that the case was “perfectly suited” for treatment on a classwide basis because the class is so numerous that joinder of all the members would be impracticable, common questions of law and fact dominate the case, and the proposed class representative has typical claims of the class and is an “adequate and appropriate” representative. The plaintiffs' complaint, filed in October 2007, claims that the alleged fraud was perpetrated by the dissemination of false and misleading statements both in documents filed with the U.S. Securities and Exchange Commission and signed by the individual defendants, and in public statements made by the company’s executives and management team. “The uniform misrepresentations made to the entire market for LDK securities had the effect of artificially inflating the market price for LDK’s American depository shares, and hence inflating the prices of its call options and decreasing the prices of its put options,” the plaintiffs said. “When the truth about the company’s inventory began to emerge, the price of LDK’s ADSes dropped dramatically, causing substantial losses to LDK’s investors.” In seeking class certification, the plaintiffs said that the case, like other securities fraud class actions, alleges that the defendants misled the entire market for the company’s securities, and that all persons who purchased the securities during the period when the misrepresentations inflated the market price were damaged in the same way. |
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