CASES
JA Solar Holdings Co. Ltd.
Class Period: Aug 12, 2008 to Nov 12, 2008
Lead Plaintiff Deadline: Feb 2, 2009 + Deadline passed
Summary of Case:
On December 31, 2008, Scott + Scott, LLP filed a class action against JA Solar Holdings Co. Ltd. (Ticker: JASO) and certain Officers and Directors ("JA Solar" or the "Company") on behalf of purchasers of American Depository Shares (ADRs) from August 12, 2008 through November 12, 2008 (Class Period) in the United States District Court for the Southern District of New York.
The complaint alleges that during the Class Period, defendants made materially false and misleading statements about the Company's financial condition and operating results. Specifically, defendants failed to disclose that JA Solar purchased from a subsidiary of Lehman Brothers Inc. ("Lehman Brothers") a three month, $100 million note (the "Lehman note") on or about July 9, 2008. At the time of this purchase, Lehman Brothers, which guaranteed the Lehman note, was under severe financial distress. According to the complaint, defendants failed to disclose: (i) that JA Solar had made a material, highly speculative investment in a subsidiary of Lehman Brothers, an entity that was then undergoing a credit crisis and under significant financial distress; (ii) that the value of JA Solar's investment in the Lehman note had diminished considerably; and (iii) that, as a result of the foregoing, defendants' positive statements concerning JA Solar's financial performance, outlook and earnings guidance were materially false and misleading and without reasonable basis. Ultimately, at the end of the Class Period, JA Solar wrote off its $100 million investment in the Lehman note. After JA Solar fully disclosed and recorded an impairment in the value of its investment in the Lehman note, on November 12, 2008, JA Solar's stock closed at $2.38 per share, a price that represented a decline of more than 87% from the high during the three month Class Period.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.