GT Solar International Inc. Case 08/01/2008
MAY 2011 - According to the Notice: Securities and Time Period: GT Solar International, Inc. (“GT Solar” or the “Company”) common stock purchased
from (and including) July 24, 2008 forward, pursuant or traceable to the Company’s registration statement filed on Form S-1\A on July 23, 2008 or prospectus filed on Form S-1\A on July 24, 2008 (collectively, the “Registration Statement”) filed in connection with GT Solar’s July 24, 2008 initial public offering (“IPO”).
Settlement Fund: $10,500,000.00 in cash. Your recovery will depend on the number of shares of common stock that you purchased and the timing of your purchases, and any sales. Depending on the number of eligible shares of common stock that participate in the Settlement1 and when that common stock was purchased and sold, the estimated average recovery per share of common stock will be approximately $0.35 before deduction of court-approved fees and expenses and any other awards or payments.
The Lawsuit: The Settlement resolves class action litigation over whether the Registration Statement for GT Solar’s July 24, 2008 IPO contained false or misleading statements. The Arkansas Public Employees Retirement System as
appointed by the Court to represent all Class Members and was designated as the Lead Plaintiff for the case and Cohen Milstein Sellers & Toll PLLC (“Cohen Milstein”) was appointed by the Court to serve as Lead Counsel.
AUGUST 2008 - According to a law firm press release, a class action was commenced 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.
The complaint charges GT Solar and certain of its officers and directors with violations of the Securities Act of 1933. GT Solar and its subsidiaries provide manufacturing equipment and “turnkey” manufacturing solutions to the photovoltaic industry worldwide.
The 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, pursuant to the Registration Statement (the “Offering”). The proceeds from the Offering went to GT Solar Holdings, LLC (”GT Solar Holdings”). GT Solar Holdings intended to use the net proceeds it received via the Offering 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 the Company’s relationship with LDK, including the fact that the Company was at imminent risk of losing out on a contract for future orders from LDK due to delays in shipping production equipment to LDK.