Shareholder Class Action Filed Against Canadian Solar Inc. by the Law Firm of Barroway Topaz Kessler Meltzer & Check, LLP
RADNOR, Pa., July 2 /PRNewswire/ — The following statement was issued today by the law firm of Barroway Topaz Kessler Meltzer & Check, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of purchasers of the securities of Canadian Solar Inc. (Nasdaq: CSIQ) (“Canadian Solar” or the “Company”), who purchased or otherwise acquired Canadian Solar securities on the NASDAQ exchange between May 26, 2009 and June 1, 2010, inclusive (the “Class Period”), including purchasers of the securities issued pursuant or traceable to the Company’s public offering on or about October 15, 2009 (the “Offering”).
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Barroway Topaz Kessler Meltzer & Check, LLP (Darren J. Check, Esq. or David M. Promisloff, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at email@example.com.
The Complaint charges Canadian Solar and certain of its officers and directors with violations of the Securities Act of 1933 and Securities Exchange Act of 1934. The Complaint also charges certain underwriters of the Company’s Offering with violations of the Securities Act of 1933. Canadian Solar designs, manufactures and delivers solar products and solar system solutions for on-grid and off-grid use to customers worldwide.
More specifically, the Complaint alleges that Defendants failed to disclose and misrepresented the following material adverse facts which were known or recklessly disregarded by them: (1) that the Company was not receiving full cash payment from certain customers with respect to certain sales; (2) that customers were returning goods to the Company after the end of the quarters; (3) that as a result, the Company overstated its financial results; (4) that the Company’s financial statements were not prepared in accordance with Generally Accepted Accounting Principles (“GAAP”); (5) that the Company lacked adequate internal and financial controls; and (6) that, as a result of the foregoing, the Company’s financial statements and public statements regarding its financial results were materially false and misleading at all relevant times. Moreover, for these reasons, the Company’s Offering Materials disseminated in connection with the Offering were false and misleading at all relevant times.
On June 1, 2010, after the market closed, Canadian Solar shocked investors when it announced that it would postpone both the release of its full financial results for the first quarter of 2010 and the scheduled conference call. The Company stated that the Audit Committee of the Board of Directors had commenced an investigation after receiving a subpoena from the SEC requesting documents from the Company relating to, among other things, certain sales transactions in 2009. The Company further stated that it may revise its 2009 fourth quarter revenue numbers due to Canadian Solar’s intention to recognize sales only after receiving full cash payments from certain customers and due to certain subsequent return of goods after the quarter ended.
Upon the release of this news, shares of the Company’s stock fell $1.69 per share, or 14.25 percent, to close on June 2, 2010 at $10.17 per share, on unusually heavy trading volume.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Barroway Topaz Kessler Meltzer & Check which prosecutes class actions in both state and federal courts throughout the country. Barroway Topaz Kessler Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.
For more information about Barroway Topaz Kessler Meltzer & Check, or for additional information about participating in this action, please visit www.btkmc.com.
If you are a member of the class described above, you may, not later than August 2, 2010, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
CONTACT: Barroway Topaz Kessler Meltzer & Check, LLP Darren J. Check, Esq. David M. Promisloff, Esq. 280 King of Prussia Road Radnor, PA 19087 1-888-299-7706 (toll free) or 1-610-667-7706 Or by e-mail at firstname.lastname@example.org
SOURCE Barroway Topaz Kessler Meltzer & Check, LLP