On April 18, 2011, Wolf Haldenstein Adler Freeman & Herz LLP filed a class action lawsuit in the United States District Court, District of Massachusetts, on behalf of all persons who purchased the common stock of American Superconductor Corp. (“AMSC” or the “Company”) [NASDAQ:AMSC] between July 29, 2010 and April 5, 2011, inclusive (the “Class Period”), against the Company and certain of the Company’s officers, alleging securities fraud pursuant to Sections 10(b) and 20(a) of the Exchange Act [15 U.S.C. §§ 78j(b) and 78t(a)] and Rule 10b-5 promulgated thereunder by the SEC [17 C.F.R. § 240.10b-5] (the “Class”).
The case name is styled Murphy v. American Superconductor Corp., et al. A copy of the complaint filed in this action can be viewed by clicking on the link to the right.
During the Class Period, AMSC issued materially false and misleading statements and omitted to state material facts that rendered their affirmative statements misleading as they related to the Company’s financial performance, business prospects, and financial condition. As a result of these materially false and misleading statements, the price of the Company’s securities was artificially inflated during the Class Period. As the truth of the Company’s materially false and misleading statements entered the market, the Company’s stock plummeted.
The Complaint alleges that statements made by defendants are false and misleading because defendants failed to disclose: a) that the Company was providing its largest customer, Sinovel Wind Group Co., Ltd. (“Sinovel”) with contracted shipments in excess of its needs; b) that Sinovel was not paying AMSC for certain contracted shipments; c) that the Company was continuing to provide Sinovel with contracted shipments despite the fact that Sinovel had not been paying for certain prior shipments; d) that, as a result, the Company was improperly accounting for its accounts receivable; e) that, as a result, the Company’s accounts receivable were overstated; f) that, as a result, the Company was improperly recognizing revenue on certain contracted shipments provided to Sinovel; g) that, as a result, the Company’s revenues were overstated; and h) that, as a result, the Company’s projected revenues for fiscal year 2010 were knowingly overstated when made.
As a result of the market’s assimilation of the news disclosed in the Company’s April 5, 2011 press release, the Company’s shares declined $10.41 per share, or 41.84%, from the closing price at $24.88 per share on April 5, 2011 to the closing price on April 6, 2011, at $14.47 per share, on unusually heavy trading volume.
In ignorance of the false and misleading nature of the statements described in the complaint, and the deceptive and manipulative devices and contrivances employed by said defendants, plaintiff and the other members of the Class relied, to their detriment, on the integrity of the market price of AMSC common stock. Had plaintiff and the other members of the Class known the truth, they would not have purchased said common stock, or would not have purchased them at the inflated prices that were paid.
Additional cases were filed by investors. On June 6, 2011, motions were made to consolidate the various cases and appoint lead plaintiff and counsel. The court has not yet ruled on the motions.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has approximately 70 attorneys in various practice areas; and offices in Chicago, New York City, and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions, please contact Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone at (800) 575-0735 (Gregory M. Nespole, Esq., or Derek Behnke), or via e-mail at email@example.com. All e-mail correspondence should make reference to AMSC.