Canadian Solar Inc. (NASDAQ:CSIQ)
MURRAY, FRANK & SAILER LLP and Glancy Binkow & Goldberg LLP have filed a class action lawsuit in the United States District Court for the Southern District of New York (Case No. 10-cv-4430) on behalf of a class consisting of all persons or entities who purchased the common stock of Canadian Solar Inc. ("Canadian Solar" or the "Company") (NASDAQ:CSIQ) between March 3, 2010 and June 1, 2010, inclusive (the "Class Period").
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The Complaint charges Canadian Solar and certain of the Company's executive officers with violations of federal securities laws. Canadian Solar is a vertically-integrated manufacturer of silicon, ingots, wafers, cells, solar modules (panels) and custom-designed solar power applications, which delivers solar power products to customers worldwide. The Complaint alleges that throughout the Class Period defendants knew or recklessly disregarded that their public statements concerning Canadian Solar's business, operations and prospects were materially false and misleading. Specifically, defendants made false and/or misleading statements and/or failed to disclose: (1) that with respect to sales to certain customers, it was uncertain whether the Company would receive full cash payments; (2) that certain goods were subsequently returned after the quarter end; (3) that, as a result, the Company's financial results were overstated during the Class Period; (4) that the Company lacked adequate internal and financial controls; and (5) that, as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On June 1, 2010, after the market closed, the Company disclosed that it was postponing the release of its full financial results for the first quarter ended March 31, 2010, as a result of the commencement of an investigation by the Audit Committee of the Company's Board of Directors. The Company further disclosed that the investigation was launched after the Company received a subpoena from the United States Securities and Exchange Commission requesting documents from the Company relating to, among other things, certain sales transactions in 2009. According to Canadian Solar, the Audit Committee retained outside counsel and independent forensic accountants to assist in reviewing, among other things, the transactions described in the subpoena. The Company also disclosed that it may revise its net revenues numbers for the 2009 fiscal fourth quarter due to the company's intention to recognize sales only after receiving full cash payments from certain customers and due to certain subsequent return of goods after the quarter end.
The next day, as a result of this news, shares of Canadian Solar declined $1.69 per share, or 14.25%, to close on June 2, 2010, at $10.17 per share, on unusually heavy volume.
If you purchased Canadian Solar securities within the Class Period, you may move the Court, not later than August 2, 2010, to serve as Lead Plaintiff for the class. A Lead Plaintiff is a representative chosen by the Court who acts on behalf of other class members in directing the litigation. You do not need to be a Lead Plaintiff to be included in the class. If you wish to discuss this litigation, or have any questions concerning this notice or your rights or interests with respect to these matters, please contact us.
Contact:
MURRAY, FRANK & SAILER LLP
Eva Hromadkova
212-682-1818
800-497-8076
