Bernstein Liebhard LLP Announces Filing of a Class Action Against A-Power Energy Generation Systems, Ltd.
July 6, 2011
Bernstein Liebhard LLP today announced that a lawsuit has been filed in the United States District Court for the District of Nevada on behalf of a class (the “Class”) of investors who purchased A-Power Energy Generation Systems, Ltd. (“A-Power” or the “Company”) (NASDAQ: APWR) common stock between the period of August 27, 2009 to June 27, 2011 (the “Class Period”).
The complaint charges A-Power and certain of its officers and directors with violations of the Securities Exchange Act of 1934. A-Power is engaged in providing onsite distributed power generation systems and micro power grids for industrial companies.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and financial results. As a result of defendants’ false statements, A-Power’s stock traded at artificially inflated prices during the Class Period, reaching a high of $20.55 per share on December 22, 2009.
On June 17, 2011, Seeking Alpha published an article stating, among other things, that APower had a history of internal weaknesses over financial controls, which had resulted in an adverse opinion from A-Power’s independent auditor, and that the Company’s filings with the State Administration for Industry and Commerce showed that A-Power was reporting significantly lower revenue and profit to the authorities in China than it was reporting in its filings with the SEC.
Then, on June 27, 2011, A-Power issued a press release announcing that MSCM LLP, the Company’s auditor, had resigned, and stating that MSCM’s resignation was due to the Company’s non-retention of a qualified independent forensic accounting firm to evaluate “certain business transactions that MSCM stated was necessary for MSCM to complete its audit of the Company’s financial statements for the year ended December 31, 2010 on a timely basis.” The Company also acknowledged that it would be delayed in filing its Form 20-F for the fiscal year ending December 31, 2010, due in part to MSCM’s resignation. On this news, after the market closed, NASDAQ halted trading of A-Power stock at $1.67 per share.
According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) A-Power improperly accounted for its related-party transactions such that its financial statements were presented in violation of Generally Accepted Accounting Principles (“GAAP”); and (b) A-Power’s revenues and income were misstated in violation of GAAP.
Plaintiffs seek to recover damages on behalf of all Class members who purchased or otherwise acquired shares of A-Power during the Class Period. If you purchased or otherwise acquired A-Power shares during the Class Period, and either lost money on the transaction or still hold the shares, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than August 31, 2011.
A “lead plaintiff” is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
If you are interested in discussing your rights as an A-Power shareholder and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or Seidman@bernlieb.com.
Bernstein Liebhard has pursued hundreds of securities, consumer and shareholder rights cases and recovered almost $3 billion for its clients. It has been named to The National Law Journal’s “Plaintiffs’ Hot List” in each of the last eight years.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the District of Nevada.