Yingli Solar Responds to Class Action Lawsuit

published: 2015-06-01 15:01 | editor: | category: News

Yingli announced on May 29th that it has become aware of the filing of a purported securities class action lawsuit against the Company and certain of its senior officers on behalf of a putative class of shareholders of the Company in the United States District Court for the Central District of California.

Yingli has been facing several US-based proposed class action lawsuits for its statement in the delayed 2014 annual report regarding its going concern issues. Yingli has responded that the actions are “without merit” and would “vigorously defend itself in this matter”, even though it has yet to be served with copy of the complaint.

One of the lawsuits planned by Glancy Prongay & Murray LLP on behalf of investors cited a number of complaints outside the going concern issues. These included a claim that Yingli had inappropriately recognised revenue and had “no reasonable prospects to collect on certain accounts receivable based on historical customer conduct.” It also claimed that Yingli Green “no longer able to borrow from commercial banks to fund its operations” and that impacted its ability to continue as a going concern.

Liansheng Miao, the chairman and chief executive officer of Yingli Green Energy, had recently responded to media stories highlighting the going concern issues in its annual report saying: "While we still have another series of medium term notes in the principal amount of RMB 1.0 billion due on October 13, 2015, we believe that we will meet our repayment obligations based on the substantial progress we have achieved to date to secure funds to repay these notes on schedule."

 

Souce: PVtech

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