Scott Bruce, James P. Bachesta, Thanh Le, Chen Weifeng, Suntech Investor Group v. Suntech Power Holdings Co. Ltd., Zhengrong Shi, David King, Julian Ralph Worley, Amy Yi Zhang, David Hogg
Published: Jan. 18, 2014 | Result Date: Dec. 26, 2013 | Filing Date: Jan. 1, 1900 |Case number: 3:12-cv-04061-RS Bench Decision – Dismissal
Court
USDC Northern
Attorneys
Plaintiff
Casey E. Sadler
(Glancy, Prongay & Murray LLP)
Lionel Z. Glancy
(Glancy, Prongay & Murray LLP)
Robert V. Prongay
(Glancy, Prongay & Murray LLP)
Howard G. Smith
(Law Offices of Howard G. Smith)
Defendant
Stephen D. Hibbard
(Proskauer Rose LLP)
Facts
Suntech Power Holdings Co. Ltd. was a solar energy company based in China. It designed, manufactured, and marketed photovoltaic products, meaning they were used to provide power for various utility customers around the world. In 2008, Suntech formed Global Solar Fund S.C.A. Sicar, a subsidiary it used to invest in solar energy projects.
In 2012, Suntech declared that it had been the victim of fraud, based on a large investment Global Solar fund had made. Suntech's share values then declined, and its shareholders filed a class action against it.
Contentions
PLAINTIFF'S CONTENTIONS:
The shareholders argued that Suntech should have known about the fraud, and that as a result the company and its executives had made material misrepresentations to the shareholders.
DEFENDANT'S CONTENTIONS:
Defendants moved to dismiss, arguing that plaintiffs had failed to allege sufficient evidence to support their claims.
Result
The court granted the motion to dismiss.
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