PHILADELPHIA, Aug. 14, 2008 (PRIME NEWSWIRE) -- The law firm of Spector, Roseman & Kodroff, P.C. announces that a securities class action lawsuit was commenced in the United States District Court for the District of New Hampshire, on behalf of investors who purchased GT Solar International Inc. ("GT Solar") common stock in its initial public offering or on the open market on July 24, 2008.
On July 23, 2008, GT Solar commenced its initial public offering, selling 30.3 million shares of common stock at $16.50 each (the "IPO"). One day after GT Solar's IPO -- at 3:15 a.m. on July 25, 2008 -- LDK Solar Co., Ltd. ("LDK"), the Company's largest customer, unexpectedly announced that it had "signed a contract" to purchase DSS furnaces from JYT Corporation through 2010. This announcement caused shares of GT Solar to close at $12.49 per share, 24% below the IPO price, on July 25, 2008.
The complaint alleges that, in light of LDK's announcement, the Registration Statement for the IPO contained false and misleading statements and omitted material facts concerning sales of and demand for DSS furnaces, GT Solar's most important product. This included statements about sales to GT Solar's largest customer, LDK, which represented 62% of the Company's revenue in the fiscal year ended on March 31, 2008. Specifically, the complaint alleges that the IPO Registration Statement and Prospectus failed to disclose that: (1) GT Solar was losing significant business from its largest customer, LDK; (2) that LDK would begin purchasing DSS furnaces from one of GT Solar's main competitor, JYT Corporation; and, (3) GT Solar had already experienced a significant decline in orders received from LDK.
If you purchased GT Solar securities during the Class Period, you may, no later than September 30, 2008, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth.
If you have sustained substantial losses in GT Solar securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at classaction@srk-law.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.
If you wish to join this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman toll-free at 888-844-5862 or e-mail at classaction@srk-law.com. For more detailed information about the firm please visit its website at http://www.srk-law.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The Firm is active in major litigation pending in federal and state courts throughout the United States. The Firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered through judgments and settlements on behalf of thousands of defrauded shareholders and companies.
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