NEW YORK, Sept. 28, 2012 (GLOBE NEWSWIRE) -- Shareholders of Suntech Power Holdings Co., Ltd. ("Suntech" or the "Company")(NYSE:STP) are reminded of the securities class action against Suntech and certain of its officers. The class action (CV 12-4655), filed in United States District Court, Northern District of California, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired Suntech's American depositary shares ("ADS") between August 18, 2010 and July 30, 2012, inclusive (the "Class Period"). This class action seeks to recover damages caused by Suntech's violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Suntech securities during the Class Period, you have until October 1, 2012 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
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 Company made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects.
In 2008, the Company entered into a commitment to invest in 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. The Company committed to invest €258.0 million in return for 86% of the share equity of GSF. As of December 31, 2011, Suntech had contributed a total of €155.7 million to GSF. Currently, Suntech has a 50% voting interest in GSF. According to the Company, the general partner of GSF is Global Solar Fund Partners S.a.r.l., which is responsible for the management of GSF.
In May 2010, Suntech entered into an arrangement in which it guaranteed payment obligations under finance facilities provided by China Development Bank to Solar Puglia II, S.ar.L, an investee company of GSF, in the amount of approximately €554.2 million. Additionally, as further security to China Development Bank, the Company was required to maintain cash collateral accounts with a commercial bank in Luxembourg in an amount equal to one installment payment of amounts due under the finance facilities amounting to approximately €30.0 million. As security for the Company's obligations under the guarantee, Suntech purportedly received a pledge of €560.0 million in German government bonds from GSF Capital Pte Ltd., the parent of the general partner of GSF. According to the Company, the fair value of the debt guarantee was approximately €2.0 million, which was recorded in Suntech's balance sheet at the effective date of the guarantee.
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. 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 €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 trading 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 trading volume.
The Pomerantz Firm, with offices in New York, Chicago and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 75 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of defrauded investors. See www.pomerantzlaw.com.
Robert S. Willoughby Pomerantz Grossman Hufford Dahlstrom & Gross LLP