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Hagens Berman LLP Notifies AMSC Investors with Losses Exceeding $300,000 of June 3 Deadline in American Superconductor Corporat

^{Published on 2011-04-07 19:41:00 - Market Wire}
 

BERKELEY, Calif.--([ BUSINESS WIRE ])--Hagens Berman LLP, a nationwide, investor-rights law firm, notifies investors who purchased stock from American Superconductor Corporation (NASDAQ:AMSC) (aAMSCa or the aCompanya) and incurred losses exceeding $300,000 of the June 3 lead plaintiff deadline in the class-action lawsuit filed in the United States District Court of the District of Massachusetts.

"This is not a sudden event unknown by management. Admitting that they have to go back and review the timing of revenue recognition in the second, third and fourth quarters hints of desperation to hide their weak demand from Sinovel for much of the year"

Investors who purchased AMSC securities from November 2, 2010, to April 5, 2011, (the aClass Perioda) and experienced significant losses may qualify to move for lead plaintiff and are encouraged to contact Hagens Berman partner Reed R. Kathrein at 510-725-3000 for a personal consultation. Investors can also contact the Hagens Berman legal team through email at [ AMSC@hbsslaw.com ].

Headquartered in Massachusetts, AMSC is a leader in renewable energy technologies such as wind turbines and electronic control systems. The complaint charges AMSC and certain of its executive officers with federal securities violations involving revenues derived from Sinovel Wind Group Co., Ltd. (aSinovela).

On April 5, 2011, AMSC reported that Sinovel, one of its largest customers, refused to accept contracted shipments at the end of March, the end of the Companya™s 2010 fiscal year. AMSC also disclosed that Sinovel planned to reduce its inventory levels before accepting any further contracted shipments. As a result, AMSCa™s earnings for the 2010 fourth quarter and fiscal year would be drastically lower than previously forecasted. AMSC also announced that it would review 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.

Following the news, the Companya™s shares declined 41.84 percent, to close at $14.47 per share on April 6, 2011.

aThis is not a sudden event unknown by management. Admitting that they have to go back and review the timing of revenue recognition in the second, third and fourth quarters hints of desperation to hide their weak demand from Sinovel for much of the year,a said Mr. Kathrein, who is leading the investigation on behalf of the law firm. aClearly their accountants have refused to sign-off on such accounting gimmickry at year end.a

The firma™s investigation centers on managementa™s supposed knowledge of the allegations that the defendants misrepresented and/or failed to disclose the following:

(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 even though Sinovel was not paying for certain prior shipments;

(4) as a result, AMSC was improperly recognizing revenue on certain contracted shipments to Sinovel; and

(5) as a result, AMSCa™s revenues were overstated.

Mr. Kathrein is interested to speak with witnesses who may have more information about these claims. To learn more, additional information is available at: [ www.hbsslaw.com/AMSC ].

[ About Investor Fraud Practice ]

Hagens Berman is a nationally recognized investor-rights law firm that provides highly acclaimed fraud recovery and asset protection services to individual and institutional investors who have been negatively affected by poor corporate governance, breach of fiduciary duties, misrepresentation of information, or a failure of good faith, fair dealing or loyalty. For an in-depth discussion of securities fraud, corporate governance and investor rights, please visit our [ Investor Fraud website ] or our [ Meaningful Disclosure blog ].

[ About Hagens Berman ]

Seattle-based Hagens Berman Sobol Shapiro LLP is one of the top class-action law firms in the nation, with offices in Boston, Chicago, Colorado Springs, Los Angeles, Minneapolis, New York, Phoenix, San Francisco and Washington, D.C. Founded in 1993, we represent plaintiffs in class actions and multi-state, large-scale litigation that seek to protect the rights of investors, consumers, workers and [ whistleblowers ]. More information about the firm is available at [ www.hbsslaw.com ].