NEW YORK, May 28, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of all persons or entities that purchased the American Depository Shares (“ADSs”) of Yingli Green Energy Holding Company Limited (“Yingli” or the “Company”) (NYSE:YGE) between March 18, 2014 and May 15, 2015, inclusive (the “Class Period”), alleging violations of the securities laws against the Company and certain of its officers (the “Complaint”).
Yingli, together with subsidiaries, designs, manufactures, sells and installs photovoltaic (solar energy) products in the People’s Republic of China.
On May 15, 2015, the Company filed its Annual Report with the SEC. The Company disclosed in its Annual Report that there is “substantial doubt” that Yingli can remain solvent, stating, “[o]ur substantial indebtedness and net loss may adversely affect our business, financial condition and results of operations, as well as our ability to meet our payment obligations.”
On this news, shares of Yingli declined $0.21 per share, over 12%, to close on May 18, 2015, at $1.49 per share, on unusually heavy volume.
According to the Complaint, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company was improperly recognizing revenue; (2) the Company had no realistic chance to collect on various accounts receivable because of historical customer conduct; (3) the Company was no longer able to borrow from commercial banks to fund its operations and could not raise additional capital; (4) the Company’s inability to borrow funds or raise additional capital threatened the Company’s ability to continue as a going concern; and, (5) as a result of these factors, Defendants’ statements about Yingli’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
If you wish to serve as lead plaintiff, you must move the Court no later than July 27, 2015. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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