RADNOR, Pa., Oct. 12 /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 all purchasers of securities of LDK Solar Co., Ltd. ("LDK" or the "Company") between June 1, 2007 and October 8, 2007, inclusive (the "Class Period").
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 LDK and certain of its officers and directors with violations of the Securities Exchange Act of 1934. LDK manufacturers and provides multicrystalline solar wafers to manufacturers of photovoltaic products, including solar cells and solar modules. More specifically, the Complaint alleges that defendants failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company had significantly less feedstock inventory than it claimed to have; and (2) that only a fraction of the feedstock inventory that the Company did have was of sufficient quality for use in the manufacture of silicone wafers.
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 engagement on its inventory. 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.
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 December 10, 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
