RADNOR, Pa., Oct. 5 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin Barroway Topaz & Kessler, 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 those who purchased or otherwise acquired China Sunergy Co., Ltd.'s ("China Sunergy" or the "Company") American Depository Shares ("ADS") pursuant or traceable to the Company's May 17, 2007 Initial Public Offering (the "IPO" or 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 Schiffrin Barroway Topaz & Kessler, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at
The Complaint charges China Sunergy, certain of its officers and directors and the Underwriters of the Company's IPO with violations of sections 11, 12 and 15 of the Securities Act of 1933. China Sunergy, through its subsidiaries, is a manufacturer of solar cell products in the People's Republic of China. More specifically, the Complaint alleges that in connection with the Company's IPO, defendants failed to disclose or indicate the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company lacked adequate quantities of silicon raw materials to meet its near-term production demands; (2) that the Company inflated sales in order to get its IPO off the ground by selling its silicon raw materials inventory; (3) as a result of this, the Company knew that it could not meet its quarterly guidance because the sell off created production shortages; (4) that the Company lacked adequate internal and financial controls; (5) that the underwriters of the Company's IPO had failed to conduct an adequate due diligence investigation into the Company; and (6) that, as a result of the foregoing, the Company's Registration Statement was false and misleading at all relevant times.
On May 17, 2007, the Company conducted its IPO. In connection with its IPO, the Company filed a Registration Statement and Prospectus (collectively referred to as the "Registration Statement") with the SEC. The IPO was a financial success for the Company, as it sold 8.5 million ADSs to investors at a price of $11.00 per share for gross proceeds of $93.5 million.
On July 3, 2007, the Company shocked investors when it reported preliminary results for the second quarter of 2007. The Company's preliminary results were well below its guidance due to a tight supply of raw materials, which had affected the quality, quantity, and delivery of raw materials, and severely impacted the Company's margins. This news was in stark contrast to the Company's IPO materials, which stated that at the time of the IPO, the Company had entered "into contracts and framework agreements for sufficient silicon raw material supplies to support our planned production ... in 2007." On this news, the Company's securities declined $2.69 per share, or over 19 percent, to close on July 3, 2007 at $11.28 per share, on unusually heavy trading volume.
Then on August 24, 2007, the Company reported a second quarter 2007 loss of $3.8 million, or $0.14 per share, as compared with a profit of $1.6 million, or $0.09 per share, in the comparable quarter of 2006, and against analyst expectations of $0.02 profit per share. Additionally, the Company provided a dismal outlook for the second half of 2007, citing "the tight polysilicon supply situation that may not ease in the near term," which was "likely to remain unchanged in the medium-term," and "potentially continuing well into 2008 or beyond." On this news, the Company's securities declined an additional $1.54 per share, or over 20.6 percent, to close on August 24, 2007 at $5.91 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 Schiffrin Barroway Topaz & Kessler which prosecutes class actions in both state and federal courts throughout the country. Schiffrin Barroway Topaz & Kessler 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 Schiffrin Barroway Topaz & Kessler or to sign up to participate in this action online, please visit http://www.sbtklaw.com/
If you are a member of the class described above, you may, not later than November 9, 2007, 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. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Schiffrin Barroway Topaz & Kessler or other counsel of your choice, to serve as your counsel in this action.
CONTACT: Schiffrin Barroway Topaz & Kessler, LLP
Darren J. Check, Esq.
Richard A. Maniskas, 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
