Silicon crystalline growth systems specialist, GT Solar is to settle two securities class-action lawsuits related to initial public offering in 2008 at a cost of US$10.5 million. GT Solar said it would pay US$1 million, while its liability insurers would contribute the remaining US$9.5 million.
Class-action lawsuits reigned down on GT Solar after its IPO on the NASDAQ stock exchange in July, 2008 due to failure to declare its then largest customer, LDK Solar was planning to secure furnace technology from a rival firm based in China, JYT. The problem arose after news appeared almost immediately after the successful IPO about LDK’s purchases.
“This settlement, once approved by the federal and state courts, will resolve these matters in a way that is in the best interests of GT Solar’s shareholders,” said Tom Gutierrez, GT Solar’s president and CEO. “We believe that this settlement will provide GT Solar with certainty on the federal and state securities lawsuits, will eliminate the uncertainties and further expense associated with those litigations, and will eliminate an unnecessary drain on management time.”
The terms of the proposed settlement includes no admission of liability or wrongdoing by GT Solar.