Suntech Power Holdings Co., Ltd. (ADR) (NYSE:STP) Investor Files Lawsuit Against CEO

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Company Name(s): 
Suntech Power Holdings
Case Name: 
Suntech Power Holdings Shareholder Derivative Lawsuit 01/04/2013
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: STP
Lawsuit Overview
Type of Lawsuit: 
Shareholder Derivative Action
Date Filed: 
01/04/2013
Summary: 

Jan. 08, 2013 (Shareholders Foundation) -- An investor in shares of Suntech Power Holdings Co., Ltd. (ADR) (NYSE:STP) filed a lawsuit against the CEO of Suntech Power Holdings Co over alleged breaches of fiduciary duties.

The plaintiff alleges that the CEO of Suntech Power Holdings Co., Ltd in conjunction with other top executives hollowed out the company for the benefit of silicon supplier Asia Silicon Qinhai, a company the CEO co-founded in 2006. The lawsuit against the CEO follows an earlier lawsuit filed against Suntech Power Holdings Co., Ltd. over alleged Securities Laws Violations.

According to that complaint the plaintiff alleges that Suntech Power Holdings Co., Ltd. violated the Securities Exchange Act of 1934 by issuing allegedly false and misleading information to investors about the Company's financial and business condition.

Specifically, so the lawsuit, defendants allegedly misrepresented and/or failed to disclose that over 560 million (EURO) of German government bonds pledged to Suntech Power Holdings Co., Ltd. in connection with a loan guarantee Suntech Power Holdings Co., Ltd. made for a related entity, did not exist.

Shares of Suntech Power Holdings Co., Ltd. (ADR) (NYSE:STP) declined from as high as$10.71 in early 2011 to as low as $0.72 per share in September 2012.

On Januayr 8, 2013, NYSE:STP shares closed at $1.66 per share.