LDK Solar Co., Ltd.Cohen, Milstein has asked to be appointed lead counsel in ongoing securities litigation on behalf of a proposed class of all persons who purchased the securities of LDK Solar Co., Ltd. ("LDK" or the "Company") (NYSE:LDK) from approximately June 1, 2007 through approximately October 8, 2007. LDK manufacturers and provides multicrystalline solar wafers to manufacturers of photovoltaic products, including solar cells and solar modules. The cases against LDK are currently pending in both the United States District Court for the Southern District of New York and the United States District Court for the Northern District of California, but are likely to be consolidated before a single District Court. The complaints charge 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 have any questions about this notice or the action, or with regard to your rights, please contact either of the following: Steven J. Toll, Esq.
Matthew B. Kaplan
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, or mkaplan@cmht.com |
