JinkoSolar Holding Co., Ltd., a Chinese solar PV company that operates globally, announced today that it has agreed to settle the class action lawsuit broughtagainst it in 2011 on behalf of all purchasers of JinkoSolar’s American Depositary Shares (NYSE: JKS) between May 13, 2010 andSeptember 20, 2011. The settlement is still subject to court approval. All related claims against JinkoSolar’s officers and directors as well as the underwriters involved in JinkoSolar’s public offerings during the relevant period will also be resolved as part of this settlement.
Under the terms of the proposed settlement, the members of the proposed class will receive a settlement fund of $5.05 million, less any court-approved fees. JinkoSolar will contribute a portion of the settlement fund, and JinkoSolar’s insurers will fund the remaining portion. JinkoSolar will not take any charge in connection with the settlement.
The plaintiffs had alleged, among other things, that certain of JinkoSolar’s filings with the U.S. Securities and Exchange Commission contained misrepresentations about the extent of its compliance with environmental regulations in China. JinkoSolar has denied, and continues to deny, the allegations and is entering into this settlement solely to eliminate the uncertainty, burden and expense of further protracted litigation.
The proposed settlement will be reviewed by Judge J. Paul Oetken of the federal court in New York, where the lawsuit is pending. Further information concerning the details of the settlement are available from the court’s docket, Marco Peters v. JinkoSolar Holding Co., Ltd., et al., No. 11 Civ. 7133 (JPO) (U.S. District Court, Southern District of New York).
ST Staff Writers
This post was prepared by Solar Thermal Magazine staff.