LOS ANGELES, May 6, 2011 (GLOBE NEWSWIRE) -- Glancy Binkow & Goldberg LLP announces that all persons or entities who purchased or otherwise acquired the securities of American Superconductor Corporation ("AMSC" or the "Company") (Nasdaq:AMSC) between November 2, 2010, and April 5, 2011, inclusive (the "Class Period"), have until June 6, 2011 to move the Court to serve as Lead Plaintiff. The securities fraud class action lawsuit was filed in the United States District Court for the District of Massachusetts.
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201‑9150 or Toll Free at (888) 773‑9224, by email to shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com.
The Complaint charges that defendants misrepresented and/or failed to disclose that: (1) AMSC was providing its primary customer – Sinovel Wind Group Co., Ltd. ("Sinovel") – with contracted shipments in excess of its needs; (2) Sinovel was not paying AMSC for certain contracted shipments; (3) AMSC was continuing to provide Sinovel with contracted shipments although Sinovel was not paying for certain prior shipments; (4) as a result, AMSC was improperly recognizing revenue on certain contracted shipments to Sinovel; (5) as a result, AMSC's revenues were overstated; and (6), the Company lacked adequate internal and financial controls.
On April 5, 2011, AMSC disclosed that on March 31, 2011, the last day of AMSC's 2010 fiscal year, Sinovel refused to accept contracted shipments, and AMSC believed Sinovel intended to reduce its level of inventory before accepting any further contracted shipments. As a result, AMSC's earnings for the 2010 fourth quarter and fiscal year would be substantially below previous forecasts. As a result of accumulated aged accounts receivable due to payment delays and Sinovel's recent refusal to accept March deliveries, AMSC informed investors it was reviewing the appropriateness of the timing of its revenue recognition on approximately $56 million of unpaid shipments in the second, third and fourth quarters of fiscal 2010. On this news, the Company's shares declined $10.41 per share, or 41.84%, to close on April 6, 2011, at $14.47 per share, on unusually heavy trading volume.
Any person or group who suffered a loss as a result of purchasing AMSC securities between November 2, 2010, and April 5, 2011, may ask the Court to be appointed as Lead Plaintiff, but must file a motion no later than the June 6, 2011 deadline.
Glancy Binkow & Goldberg LLP is a law firm with significant experience in prosecuting class actions, substantial expertise in actions involving corporate fraud, and is representing AMSC shareholders in this litigation.
If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201‑9150, Toll Free at (888) 773‑9224, by e‑mail to shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com.