Insider Selling/Undisclosed Related Party Transactions
Product or Service
This is a securities class action lawsuit against GT Solar International on behalf of purchasers of GT Solar International, Inc. common stock pursuant or traceable to the Company's false and misleading Registration Statement and Prospectus issued in connection with its July 23, 2008 initial public offering.
GT Solar and its subsidiaries provide manufacturing equipment and "turnkey" manufacturing solutions to the photovoltaic industry worldwide.
The class action complaint alleges that on July 23, 2008, GT Solar accomplished its IPO of 30.3 million shares at $16.50 per share for net proceeds of $500 million. The proceeds from the IPO went to GT Solar Holdings, LLC (GT Solar Holdings). GT Solar Holdings intended to use the net proceeds it received via the IPO to make a distribution to its shareholders. In its first day of trading, GT Solar closed at $14.59 per share on July 24, 2008.
The following day, on July 25, 2008, before the market opened, LDK Solar Co., LTD (LDK), GT Solar's largest customer, issued a press release announcing that it had signed a contract to purchase production equipment from one of GT Solar's competitors.
On this news, GT Solar's stock price declined to as low as $9.30 per share before closing at $12.59 per share on July 25, 2008, losing 13% of its value in its second day of trading.
According to the complaint, the Registration Statement failed to disclose the true extent of the risks surrounding GT Solar's relationship with LDK, including the fact that GT Solar was at imminent risk of losing out on a contract for future orders from LDK due to delays in shipping production equipment to LDK.
Name (Stock Symbol)
GT Solar International, Inc. (SOLR)
GT Solar International, Inc. and its subsidiaries provide manufacturing equipment and turnkey manufacturing solutions to the photovoltaic (PV) industry.
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