This is a securities fraud class action lawsuit against JA Solar Holdings Co., Ltd.
JA Solar manufactures solar cells. JA Solar sells its products to solar module manufacturers who assemble and integrate its solar cells into modules and systems that convert sunlight into electricity.
This class action lawsuit alleges that JA Solar mislead investors about JA Solar's financial condition and operating results. JA Solar purchased from a subsidiary of Lehman Brothers Inc. a three month, $100 million note on 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, JA Solar 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, 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.
Name (Stock Symbol)
JA Solar Holdings Co., Ltd. (JASO)
JA Solar Holdings Co., Ltd., through its subsidiaries, engages in the design, development, manufacture, and sale of photovoltaic solar cells in China and internationally.
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