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Girard Gibbs LLP Files Class Action Lawsuit Against American Superconductor Corporation - AMSC

^{Published on 2011-04-26 10:15:51 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--The law firm of Girard Gibbs LLP ([ http://www.GirardGibbs.com/American-Superconductor.asp ]) has filed a class action lawsuit on behalf of investors of American Superconductor Corp. (NASDAQ:AMSC) who purchased American Superconductor common stock between November 2, 2010, and April 5, 2011. The complaint charges American Superconductor with violations of federal securities laws for issuing false and misleading statements about the company's business, operations, and prospects. Specifically, it is alleged that the company was improperly recognizing revenue on certain contracted shipments to its largest customer, Sinovel Wind Group, and overstating revenues as a result.

"intends to reduce its level of inventory before accepting further shipments."

American Superconductor Corporation is a power technologies company providing wind turbine designs and electrical control systems primarily in North America, Europe, and the Asia-Pacific. The lawsuit, captioned Griffin v. American Superconductor Corp. et al., 1:11-cv-10707, is pending in the United States District Court for the District of Massachusetts.

The complaint alleges that defendants violated the Securities Exchange Act of 1934 by issuing a series of misrepresentations and omissions that actively concealed and failed to disclose that: (1) American Superconductor was providing Sinovel with contracted shipments in excess of its needs; (2) Sinovel was not paying American Superconductor for certain contracted shipments; (3) The company was continuing to provide Sinovel with contracted shipments despite the fact that Sinovel had not been paying for certain prior shipments. As a result, American Superconductor was improperly recognizing revenue on certain contracted shipments to Sinovel.

On April 5, 2011, American Superconductor announced that on the last day of its fiscal year, Sinoval arefused to accepta shipments of wind turbine components and spare parts that the company had expected to deliver. In addition, that Sinoval had been refusing to pay for certain contracted shipments made earlier in fiscal year 2010, and that American Superconductor believed Sinovel aintends to reduce its level of inventory before accepting further shipments.a The company announced that, as a result, its 2010 full year revenues would be less than $355 million, compared to its previous forecast of $430 to $440 million, and full year profits would be well below previous estimates. On the next trading day, AMSC stock plunged nearly 42%, closing at $14.47 down $10.41 from the previous daya™s close of $24.88.

Plaintiff seeks to recover damages on behalf of the class and is represented by Girard Gibbs LLP. If you wish to discuss this action or have any questions concerning your rights as an investor in American Superconductor Corp., please contact Girard Gibbs LLP ([ www.girardgibbs.com/american-superconductor.asp ]) or call toll-free at (866) 981-4800. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of his or her choice, or may choose to do nothing and remain an absent class member. If you would like to serve as lead plaintiff in this action, you must move the Court no later than June 6, 2011. A copy of the complaint is available from the Court, or can be viewed on Girard Gibbs LLPa™s website at [ http://www.girardgibbs.com/american-superconductor.asp ].

Girard Gibbs LLP is one of the nationa™s leading firms representing individual and institutional investors in securities fraud class actions and litigation to correct abusive corporate governance practices, breaches of fiduciary duty and proxy violations. For more information, please access the firma™s web site, [ www.girardgibbs.com ].