On March 17, 2016, a federal judge granted final approval of a $5 million cash settlement achieved by Lead Plaintiffs with Defendant Zhengrong Shi, Suntech’s former Chief Executive Officer and former Chairman of the Board.
At a hearing on February 11, 2016, Judge Richard Seeborg of the United States District Court for the Northern District of California granted final approval to the settlement and ordered that Co-Lead Counsel Cohen Milstein Sellers & Toll PLLC’s (“Cohen Milstein”) request for attorneys’ fees and expenses be granted.
Judge Seeborg’s ruling finally resolves securities fraud claims asserted under sections 10(b) and 20(a) of the Securities Exchange Act by Lead Plaintiffs against Defendant Shi for alleged materially false and misleading statements regarding a €554.2 loan made by Suntech to Global Solar Fund (“GSF”), an investment vehicle that funded Suntech’s solar energy projects. The Second Amended Complaint alleged that Defendant Shi falsely assured investors during the Class Period that the loan was fully backstopped by a pledge of €560 million in German government bonds, when in fact those bonds never existed. The Second Amended Complaint further alleged that Defendant Shi recklessly disregarded blatant irregularities in the transactional documents purporting to demonstrate the existence of the German government bonds.
The $5 million cash settlement benefits a class of persons and entities who purchased or otherwise acquired American Depository Shares or Suntech 3% Convertible Senior Notes between August 18, 2010 and July 30, 2012.
Lead Plaintiffs and the Class are represented by Daniel S. Sommers of Cohen Milstein.
More information about the settlement, including the notice, proof of claim form, and settlement agreement can be found at http://www.suntechsettlement.com.