NEW YORK, May 9, 2011 (GLOBE NEWSWIRE) -- Shareholders of American Superconductor Corp. ("AMSC" or the "Company") (Nasdaq:AMSC) are reminded of the securities class action lawsuit filed against AMSC and certain of its officers. The class action (No. 11 Civ. 10743), pending in the District of Massachusetts, is on behalf of a class of all persons who purchased AMSC during the period from July 29, 2010 through April 5, 2011 (the "Class Period").
If you are a shareholder who purchased AMSC securities during the Class Period and would like to serve as Lead Plaintiff for the class, you have until June 6, 2011 to seek appointment from the Court. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Rachelle R. Boyle at rrboyle@pomlaw.com or 888.476.6529, toll free.
During the Class Period, the Company's quarterly revenues were largely derived from one primary customer, Sinovel Wind Group Co., Ltd. ("Sinovel"). The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company was providing Sinovel with contracted shipments in excess of its needs; (2) Sinovel was not paying AMSC for certain contracted shipments; (3) the Company was continuing to provide Sinovel with contracted shipments even though Sinovel was not paying for certain prior shipments; (4) the Company was improperly recognizing revenue on certain contracted shipments provided to Sinovel; and (5) that the Company lacked adequate internal and financial controls.
On April 5, 2011, the Company disclosed that Sinovel had recently refused to accept contracted shipments, and believed that Sinovel intended to reduce its level of inventory before accepting any further shipments. The Company said that as a result its earnings for the 2010 fiscal fourth quarter and year would be substantially below the Company's previous forecasts. Furthermore, the Company revealed that Sinovel had yet to pay AMSC for certain contracted shipments that occurred during the 2010 fiscal year. The Company acknowledged that the accumulated aged accounts receivable due to payment delays and Sinovel's recent refusal to accept March deliveries raised questions about 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, AMSC shares declined $10.41 per share, or nearly 42%, to close at $14.47 per share on April 6, 2011.
The Pomerantz Firm, with offices in New York, Chicago, and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.