December 31, 2008 - 1:25 PM EST
Scott+Scott LLP Files Class Action Lawsuit Against JA Solar Holdings Co., Ltd. On Behalf of Investors -- JASO
NEW YORK, Dec. 31, 2008 (GLOBE NEWSWIRE) -- On December 31, 2008, Scott+Scott LLP filed a class action against JA Solar Holdings Co., Ltd. ("JA Solar" or the "Company") (Nasdaq:JASO) and certain officers and directors in the U.S. District Court for the Southern District of New York. The action is on behalf of those who purchased or otherwise acquired the American Depository Shares ("ADS") of JA Solar from August 12, 2008 to November 12, 2008, inclusive (the "Class Period"), for violations of the Securities Exchange Act of 1934. The complaint alleges that defendants made false and misleading statements and material omissions regarding the Company's financial condition and operating results and that, as a result, the price of the Company's ADS was inflated during the Class Period, thereby harming investors.
According to the complaint, JA Solar failed during the Class Period to disclose to investors that: (a) JA Solar had made a highly speculative and material investment in a subsidiary of Lehman Brothers, an entity that was on the brink of insolvency and headed toward bankruptcy; (b) the value of the Company's investment in the Lehman note had diminished considerably; and (c) Defendants' positive statements concerning JA Solar's financial performance, outlook and earnings guidance for 2008 and 2009 were materially false and misleading and such statements were made without any reasonable basis. Further, Defendants made affirmatively false and misleading statements about the state of their Lehman Brothers investment even when purporting to make a full disclosure to investors in mid-September 2008.
On November 12, 2008, the Company shocked investors when it announced its 3Q 2008 results for the period ending September 30, 2008, and revealed a $100 million impairment on short-term investments purchased from Lehman Brothers Treasury Co. B.V. and a loss of $7.35 million in derivatives deals with the investment bank. As a result, JA Solar revised its 2008 revenue outlook to between $849.5 million and $878.9 million. The Company had previously told investors to expect revenue of between $1.05 billion to $1.17 billion in 2008. The Company also cut its 2009 revenue forecast to between $1.5 billion and $1.7 billion, materially lower than the previously announced forecast of $2 billion to $2.2 billion. On this news, JA Solar's ADS price dropped from $3.34 on November 11, 2008 to close at $2.38 per share on November 12, 2008. The decline represented a one-day drop of 28.7%, and JA Solar ADS declined more than 86% from the Class Period-high trading price.
If you purchased JA Solar ADS during the Class Period and wish to serve as a lead plaintiff in the action, you must move the Court no later than February 2, 2009. Any member of the investor class may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member.
If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott (scottlaw@scott-scott.com, (800) 404-7770, (860) 537-5537 or visit the Scott+Scott website, http://www.scott-scott.com) for more information. There is no cost or fee to you. Scott+Scott has significant experience in prosecuting major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals and other entities worldwide.
CONTACT: Scott+Scott, LLP
(800) 404-7770
(860) 537-5537
scottlaw@scott-scott.com
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