Lawsuit Overview
Settlement Overview
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December 17, 2010 - The court ordered the authorization of the distribution of the net settlement fund.
June 22, 2010 - The court approved the settlement, entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissed the action with prejudice.
February 17, 2010 - The court preliminarily approved the settlement.
February 9, 2010 - Parties filed a stipulation of settlement.
September 24, 2008 - The court denied the defendants' motion to dismiss.
July 21, 2008 - The defendants filed another motion to dismiss.
May 29, 2008 - The court denied the defendants' motion to dismiss.
April 7, 2008 - The defendants filed a motion to dismiss.
March 10, 2008 - The lead plaintiff filed a consolidated complaint on behalf of investors who purchased American Depositary Shares (ADS) of LDK Solar Company Ltd (NYSE: LDK) between June 1, 2007 through October 7, 2007. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between June 1, 2007 through October 7, 2007.
February 8, 2008 - The lead counsel was appointed.
January 4, 2008 - The lead plaintiff was appointed.
November 29, 2007 - The originally filed case was transferred to the U.S. District Court for the Northern District of California.
November 21, 2007 - Lead plaintiff motions were filed.
November 13, 2007 - Another investor filed a complaint.
November 2, 2007 - Another investor filed a complaint.
October 10, 2007 - Another investor filed a complaint in the U.S. District Court for the Southern District of New York on behalf of investors who purchased American Depositary Shares (ADS) of LDK Solar Company Ltd (NYSE: LDK) between June 1, 2007, and October 8, 2007.
October 9, 2007 - Two additional investors filed complaints in the U.S. District Court for the Northern District of California on behalf of investors who purchased American Depositary Shares (ADS) of LDK Solar Company Ltd (NYSE: LDK) between August 1, 2007 to October 3, 2007.
October 9, 2007 - An investor in American Depositary Shares (ADS) of LDK Solar Company Ltd (NYSE: LDK) filed a lawsuit in the U.S. District Court for the Southern District of New York against LDK Solar Company Ltd over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between June 1, 2005 and October 2, 2005.
The complaint charges LDK Solar Company Ltd and certain of its officers and directors with violations of the Securities Exchange Act of 1934. LDK Solar Company Ltd manufactures multicrystalline solar wafers, which are the principal raw material used to produce solar cells. The complaint alleges that between June 1, 2005 and October 2, 2005, defendants concealed the full extent of how badly flawed LDK Solar Company Ltd’s internal controls were, preventing it from accurately measuring or reporting its inventory. As a result, LDK Solar Company Ltd’s inventories were overstated by an estimated 25%, causing inflation in LDK Solar Company Ltd’s assets, earnings and earnings per share (“EPS”) reported between June 1, 2005 and October 2, 2005.
On October 3, 2007, LDK Solar Company Ltd (NYSE: LDK) share price fell almost 25% following a report that LDK Solar Company Ltd’s financial controller had resigned, stating that LDK Solar Company Ltd lacked internal controls and that LDK Solar Company Ltd's reported 1,000 tonne inventory of polysilicon was overstated by 25%. LDK Solar Company Ltd’s former controller, Charley Situ, reported these discrepancies to both the U.S. Securities and Exchange Commission and LDK Solar Company Ltd’s external auditor, KPMG. LDK Solar Company Ltd could not deny or confirm Situ’s allegations on October 3, 2007, but promised to investigate and issue a further statement. LDK Solar Company Ltd has since stated it will have an independent outside auditor investigate Situ’s allegations. American Depositary Shares (ADS) of LDK Solar Company Ltd (NYSE: LDK), which traded as high as $76.75 on September 27, 2007, plummeted $16.66, or 24.39%, to close at $51.65 on October 3, 2007. The ADSs continued to decline in after-hours trading, falling to $47.49.