Welcome to the In re China Sunergy Securities Litigation Class Action website
The Final Hearing occured on May 12, 2011 at 2:30pm.
Lead Plaintiff alleges that the Defendants violated Sections 11 and 12(a)(2) of the Securities Act of 1933, and that the Individual Defendants also violated Section 15 of the Securities Act of 1933, by issuing or participating in the issuance of the Prospectus and registration statement for China Sunergy’s initial public offering of securities. Lead Plaintiff alleges the Prospectus and registration statement contained materially untrue or misleading statements or omissions regarding China Sunergy’s supply potential, inventory, contracts, business model, and control procedures. Defendants moved to dismiss the Complaint. Defendants argued that China Sunergy’s Prospectus was not false or misleading, and that Lead Plaintiff did not adequately allege any valid claim under the federal securities laws. The parties reached the Settlement described in the Notice before the Court ruled on Defendants’ motions to dismiss the Complaint.
At the time the Settlement was reached, Lead Plaintiff faced the possibility that the Complaint would be dismissed in its entirety. Even if the Complaint were not dismissed, Lead Plaintiff also faced the possibility that the proposed class would not be certified or that some or all of the claims would be dismissed before trial. Had the case gone to trial, Defendants would have asserted that China Sunergy’s IPO Prospectus fully complied with federal securities laws and did not contain any false or misleading statements or omissions. Defendants would also contest: (1) the amount of damages, if any; (2) the extent to which the various statements that Lead Plaintiff alleged were materially false or misleading influenced (if at all) the trading prices of China Sunergy’s ADS at various times during the relevant time period; and (3) whether Lead Plaintiff had standing to assert all the claims in the Complaint. Thus, had this action continued, Lead Plaintiff and the proposed Class faced the possibility that they would not obtain any recovery. This Settlement enables the Class to recover a percentage of the alleged damages as calculated by Lead Counsel in conjunction with their consultants, without incurring any additional risk. As a result, Lead Plaintiff and Lead Counsel believe this Settlement is a fair and reasonable recovery.
For more information, you can call the Claims Administrator toll-free at 1-800-207-0343 or write to the Claims Administrator at: China Sunergy Securities Litigation Claims Administrator, P.O. Box 6177, Novato, CA 94948-6177.
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