WASHINGTON, Aug. 4, 2008 (PRIME NEWSWIRE) -- A class action law suit has been filed against GT Solar International, Inc. ("GT Solar" or the "Company") (Nasdaq:SOLR) in the United States District Court for the District of New Hampshire, and Finkelstein Thompson LLP is investigating similar claims at this time.
The lawsuit alleges that on July 23, 2008, GT Solar made its initial public offering of 30.3 million shares at $16.50 per share. The company's net proceeds from the IPO were approximately $500 million, the proceeds of which went to its parent company, GT Solar Holdings. GT Solar Holdings reportedly used those proceeds to make a distribution in excess of $90 million to its shareholders. On July 24, in its first day of trading, the Company's share price fell 11% to $14.50 per share.
On July 25, 2008, GT Solar's largest customer, LDK Solar Co., Ltd. ("LDK"), announced that it would purchase equipment from one of GT Solar's competitors rather than continue to purchase equipment from the Company. LDK represented 62% of GT Solar's 2008 revenue. As a result, the Company's stock fell an additional 14% to $12.42 per share.
The filed complaint alleges that GT Solar issued materially false and misleading statements concerning the risks regarding its relationship with LDK, particularly the risk that LDK would terminate its relationship with the GT Solar. The complaint alleges that these false and misleading statements and/or omissions artificially inflated the price of GT Solar stock.
Finkelstein Thompson LLP has spent almost three decades delivering outstanding representation to institutional and individual clients in connection with securities and other finance-related litigation, and has been appointed as lead or co-lead counsel in dozens of shareholder class actions. Indeed, the firm has served in leadership roles in cases that have recovered over $1 billion for investors and consumers.
If you are a GT Solar shareholder and wish to discuss your rights and interests as an investor, please contact our Washington, D.C. office toll-free at (877) 337-1050 or by email at contact@finkelsteinthompson.com.