Tier-one integrated PV manufacturer Yingli Green Energy has been hit with several US-based proposed class action lawsuits over its statements in its delayed 2014 annual report regarding its going concern issues.
Yingli Green has responded saying 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.
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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 Green 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.
Law Offices of Howard G. Smith also made the same claims in a press statement.
Liansheng Miao, the chairman and chief executive officer of Yingli Green Energy, had recently responded to media stories highlighting the going convern issues in its annual report, which included PV Tech, 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.”
