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Glancy Binkow & Goldberg LLP, Representing Investors Who Purchased American Superconductor Corporation, Announces Class Action

^{Published on 2011-04-06 19:20:37 - Market Wire}
 

LOS ANGELES--([ BUSINESS WIRE ])--Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a class action lawsuit in the United States District Court for the District of Massachusetts on behalf of a class consisting of all persons or entities who purchased American Superconductor Corporation (aAMSCa or the aCompanya) (NASDAQ:AMSC) securities between November 2, 2010, and April 5, 2011, inclusive (the aClass Perioda).

A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at [ shareholders@glancylaw.com ], or visit our website at [ http://www.glancylaw.com ].

AMSC provides wind turbine designs and electrical control systems primarily in North America, Europe and the Asia-Pacific. During the Class Period, AMSCa™s quarterly revenues were largely derived from one primary customer a" Sinovel Wind Group Co., Ltd. (aSinovela), a manufacturer of wind turbines based in China. Sales to Sinovel represented 79% and 73% of the Companya™s total revenues reported for the 2010 fiscal second and third quarters, respectively.

The Complaint charges AMSC and certain of its executive officers with violations of federal securities laws. Specifically, defendants misrepresented and/or failed to disclose that: (1) AMSC was providing Sinovel with contracted shipments in excess of its needs; (2) Sinovel was not paying AMSC for certain contracted shipments; (3) AMSC was continuing to provide Sinovel with contracted shipments although Sinovel was not paying for certain prior shipments; (4) as a result, AMSC was improperly recognizing revenue on certain contracted shipments to Sinovel; (5) as a result, AMSCa™s revenues were overstated; and (6), the Company lacked adequate internal and financial controls.

On April 5, 2011, AMSC disclosed that on March 31, 2011, the last day of AMSCa™s 2010 fiscal year, that Sinovel refused to accept contracted shipments, and AMSC believed Sinovel intended to reduce its level of inventory before accepting any further contracted shipments. As a result, AMSCa™s earnings for the 2010 fourth quarter and fiscal year would be substantially below previous forecasts. As a result of accumulated aged accounts receivable due to payment delays and Sinovela™s recent refusal to accept March deliveries, AMSC informed investors it was reviewing the appropriateness of the timing of its revenue recognition on approximately $56 million of unpaid shipments in the second, third and fourth quarters of fiscal 2010. On this news, the Companya™s shares declined $10.41 per share, or 41.84%, to close on April 6, 2011, at $14.47 per share, on unusually heavy trading volume.

Plaintiff seeks to recover damages on behalf of class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.

If you are a member of the class described above, you may move the Court, no later than 60 days from the date of this Notice, to serve as lead plaintiff; however, you must meet certain legal requirements. 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 Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224, by e-mail to [ shareholders@glancylaw.com ], or visit our website at [ http://www.glancylaw.com ].