JinkoSolar announced that it had agreed, subject to court approval, to settle the previously disclosed class action lawsuit brought in 2011 on behalf of all purchasers of JinkoSolar's American Depositary Shares between May 13, 2010 and September 20, 2011. The settlement, if approved, will also resolve all related claims against JinkoSolar's officers and directors as well as the underwriters involved in JinkoSolar's public offerings during the relevant period.
Under the terms of the proposed settlement, the members of the proposed class will receive a settlement fund of $5.05 million, less any court-approved fees. JinkoSolar will contribute a portion of the settlement fund, and JinkoSolar's insurers will fund the remaining portion. JinkoSolar will not take any charge in connection with the settlement.
The plaintiffs had alleged, among other things, that certain of JinkoSolar's filings with the U.S. Securities and Exchange Commission contained misrepresentations about the extent of its compliance with environmental regulations in China. JinkoSolar has denied, and continues to deny, the allegations and is entering into this settlement solely to eliminate the uncertainty, burden and expense of further protracted litigation.
The proposed settlement will be reviewed by Judge J. Paul Oetken of the federal court in New York, where the lawsuit is pending. Further information concerning the details of the settlement are available from the court's docket, Marco Peters v. JinkoSolar Holding Co., Ltd., et al., No. 11 Civ. 7133 (JPO) (U.S. District Court, Southern District of New York).