A class action was filed in the United States District Court for the Southern District of New York on behalf of purchasers of the American Depository Shares ("ADS") of JA Solar Holdings Co., Ltd. ("JA Solar" or the "Company") (Nasdaq:JASO) during the period between August 12, 2008 and November 12, 2008 (the "Class Period"). The complaint charges JA Solar and certain of its officers and directors with violations of the Securities Exchange Act of 1934.
The complaint alleges that, during the Class Period, defendants made materially false and misleading statements about the Company's financial condition and operating results. Specifically, defendants failed to disclose that JA Solar purchased from a subsidiary of Lehman Brothers Inc. a three month, $100 million note, on or about July 9, 2008. According to the complaint, defendants failed to disclose: (i) that JA Solar had made a material, highly speculative investment in a subsidiary of Lehman Brothers, an entity that was then undergoing a credit crisis and under significant financial distress; (ii) that the value of JA Solar's investment in the Lehman note had diminished considerably; and (iii) that, as a result of the foregoing, defendants' positive statements concerning JA Solar's financial performance, outlook and earnings guidance were materially false and misleading and without reasonable basis.
At the end of the Class Period, JA Solar wrote off its $100 million investment in the Lehman note. After JA Solar fully disclosed and recorded an impairment in the value of its investment in the Lehman note, on November 12, 2008, JA Solar's stock closed at $2.38 per share, a price that represented a decline of more than 87% from the high during the three month Class Period.
If you purchased JA Solar ADSs during the Class Period, you may, no later than February 2, 2009, request that the Court appoint you as a lead plaintiff for the Class. A lead plaintiff is a class member that acts on behalf of other investors in directing the litigation. Although your ability to share in any recovery is not affected by your decision to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.
