At least three suits have been filed in the US District Court in Massachusetts alleging that the company violated federal securities laws by knowingly making “materially false and misleading statements” and omitting important facts regarding its dealings with the Chinese wind turbine giant, which artifcially inflated AMSC's share price.
The company revealed on 5 April that it faced significantly reduced revenue and would record a net loss because Sinovel - which represents three-quarters of AMSC's sales - had refused to accept shipments of wind turbine electrical components and spare parts, and failed to pay for certain 2010 shipments.
