Canadian Solar lawsuit thrown out
A US district court has dismissed a class action lawsuit filed against Canadian Solar in 2010 alleging it had misled investors about its revenues in the run-up to a share issue in late 2009.
New York-listed Canadian Solar – a major international PV supplier which performs most of its manufacturing in China – issued nearly 7 million new shares in a follow-on offering in October 2009, raising $103.3m.
However, the following year a handful of class action lawsuits were filed against the company, chief executive Shawn Qu, and a former chief financial officer. Among other alleged financial improprieties, investors claimed the company had booked revenue for sales that hadn’t been finalised.
In June 2010, the same month the lawsuits were filed, Canadian Solar announced it would postpone the release of its first-quarter financial results pending the outcome of an internal investigation. Throughout the ordeal, the company has proclaimed its innocence.
But on 29 March, the single remaining lawsuit was “dismissed with prejudice” by the US District Court for the Southern District of New York, according to Canadian Solar.
The court found the plaintiffs “failed to adequately allege a securities law violation”, and approved Canadian Solar’s motion to dismiss “all claims against all defendants”.
The plaintiffs have 30 days to appeal the judgment.
Canadian Solar shipped 1.54GW of modules last year, making it one of the world’s largest suppliers.