Cohen, Milstein, Hausfeld & Toll, P.L.L.C. Announces Class Action
Lawsuit Against LDK Solar Co., Ltd.
WASHINGTON - Nov. 5, 2007
The law firm of Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has filed a lawsuit on behalf of its client and all persons who purchased the securities of LDK Solar Co., Ltd. ("LDK" or the "Company") (NYSE:LDK) from June 1, 2007 through October 8, 2007, inclusive. LDK manufacturers and provides multicrystalline solar wafers to manufacturers of photovoltaic products, including solar cells and solar modules. The lawsuit was filed in the United States District Court for the Southern District of New York. Based on recent additional disclosures by LDK the court may be asked to extend the class period beyond October 8.
The complaint charges that LDK and several of its officers and directors violated the Securities Exchange Act of 1934. According to the complaint, the Company and the Defendant officers and directors improperly failed to disclose and misrepresented material adverse facts, including the fact that the Company had significantly less feedstock inventory than it claimed to have and the fact that only a fraction of the feedstock inventory it did have was of sufficient quality for use in the manufacture of silicone wafers.
The revelation of alleged improprieties at the Company led to a sharp drop in the Company's stock price. On October 3, 2007, Piper Jaffray stated in a research note that it had "confirmed that the LDK financial controller recently left the company," and was "aware of the former controller's allegations of poor financial controls and a 250-tonne inventory discrepancy." On this news, the Company's shares declined $16.66 per share, or over 24 percent, to close on October 3, 2007 at $51.65 per share, on heavy trading volume.
On October 4, 2007, the Company stated that it had formed a committee to investigate the allegations and conduct a physical inventory of LDK's polysilicon materials. The Company indicated that it had found no "material discrepancies" as compared to its financial statements, but that it had solicited an accounting firm to conduct a separate review. On this news, the Company's shares declined an additional $3.35 per share, or 6.5 percent, to close on October 4, 2007 at $48.30, again on heavy trading volume.
Then on October 8, 2007, Barron's reported that the Company "may be overstating earnings and the value of its inventories." The report indicated that the Company's inventories "may be overvalued by as much as $82 million," and that the quality of the Company's silicon ingots "is so low that a recent production run produced tons of them that were too contaminated for technicians to analyze." On this news, the Company's shares declined an additional $13.45 per share, or over 26 percent, to close on October 8, 2007 at $37.50 per share, also on heavy trading volume.
If you purchased or otherwise acquired LDK securities from June 1, 2007, through and including October 8, 2007, you may, no later than December 10, 2007, move the court to be appointed as Lead Plaintiff. There are certain legal requirements to serve as Lead Plaintiff. Any member of the proposed class may move the court to serve as Lead Plaintiff through counsel of their choice or may choose to remain an absent class member. Your ability to share in any recovery is not affected by the decision whether or not to serve as Lead Plaintiff. To be a member of the class, you need not take any action at this time.
Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., London, New York, Philadelphia, Chicago and San Francisco, and is active in major litigation pending in federal and state courts throughout the nation. The firm's website is www.cmht.com.
The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed it to lead positions in complex multi-district or consolidated litigation. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total in the billions of dollars.
If you have any questions about this notice or the action, or with regard to your rights, please contact:
Steven J. Toll, Esq.
Cohen, Milstein, Hausfeld & Toll, P.L.L.C.
1100 New York Avenue, N.W.
West Tower - Suite 500
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
E-mail: stoll@cmht.com
CONTACT: Cohen, Milstein, Hausfeld & Toll, P.L.L.C.
Steven J. Toll, Esq.
888-240-0775 or 202-408-4600
stoll@cmht.com
