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This settlement is closed!
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A US$13 million settlement has been reached in a class action lawsuit alleging Canadian Solar Inc. and some of its current and former officers misrepresented the company’s financial situation, resulting in Canadian Solar’s securities trading at inflated prices.
If you held or purchased shares of Canadian Solar between May 26, 2009 and June 1, 2010, you may be entitled to payment from the Canadian Solar class action settlement.
Canadian Solar Class Action Lawsuit Allegations
The Canadian Solar class action lawsuit alleged that Canadian Solar, Shawn Xiaohua Qu and Arthur Chien misrepresented Canadian Solar’s revenue and losses. It also claims that the defendants misrepresented that Canadian Solar’s financial results were prepared and presented according to U.S. Generally Accepted Accounting Principles.
These alleged misrepresentations were made through oral statements and public disclosures released between May 26, 2009 and June 1, 2010, according to the Canadian Solar class action lawsuit.
The plaintiff alleged that, during the Class Period, Canadian Solar’s 2009 interim and annual financial statements were materially false and/or misleading. According to the Canadian Solar class action lawsuit, the defendants inappropriately reported revenue for which collection was not reasonably assured, failed to report a loss on a firm purchase agreement with one of the company’s largest suppliers, failed to report an appropriate reserve for sales returns, and failed to report an appropriate allowance for advance payments made to a major supplier.
Plaintiff: Canadian Solar Misrepresentations Caused Financial Loss for Class Members
On June 1, 2010, Canadian Solar reportedly announced that its audit committee had launched an internal investigation after receiving a subpoena from the Securities and Exchange Commission requesting documents related to certain sales transactions in 2019.
“As a result of the revelations on June 1, 2010, the market price for Canadian Solar’s shares fell by approximately 15% during trading on June 2, 2010 on extraordinarily heavy trading volume,” the Canadian Solar class action lawsuit alleges.
“This one day drop in the price of the securities of Canadian Solar resulted in a loss in its market capitalization of approximately $70 million.”
Canadian Solar subsequently released revised results for Q4 2009, which essentially admitted that the initial financial statements contained misrepresentations.
“As a result of the Defendants’ misrepresentations alleged herein, Canadian Solar’s stock price was artificially inflated during the Class Period, and the Class Members suffered damages as a result of purchasing or acquiring the securities of Canadian Solar at inflated prices,” the Canadian Solar class action lawsuit alleged.
The Canadian Solar class action lawsuit was certified in January 2015.
The defendants deny the allegations but agreed to settle the Canadian Solar class action lawsuit to avoid the burden and expense of ongoing litigation.
The deadline to opt out of the Canadian Solar class action lawsuit passed on Jan. 15, 2016. The deadline to object to the class action settlement passed on Oct. 16, 2020.
Who’s Eligible
Class Members of the Canadian Solar securities settlement include persons who fall into one of the following two categories:
Misrepresentation Class: Includes all persons (wherever they may reside) who acquired securities of Canadian Solar in the secondary market from the opening of trading on the NASDAQ on Oct. 15, 2009 to the close of trading on the NASDAQ on June 1, 2010, and who continued to hold Canadian Solar securities on June 1, 2010.
Oppression Class: Includes all persons (wherever they may reside) who were registered or beneficial security holders of Canadian Solar from the opening of trading on the NASDAQ on May 36, 2009 to the close of trading on the NASDAQ on June 1, 2010, and who continued to hold Canadian Solar securities at the close of trading on the NASDAQ on June 1, 2010.
NOTE: Class Members must have sustained a net loss in order to receive a payment from the Canadian Solar class action settlement.
A list of those who are excluded from the Canadian Solar class action settlement is available here.
Potential Award
Varies. The Canadian Solar settlement funds will be distributed to Class Members according to a distribution protocol that has been approved by the court. Because the settlement funds will be distributed on a pro rata basis, the total amount each claimant will receive depends on the total number of claims submitted. A copy of the distribution protocol is available here.
Proof of Purchase
Class Members must provide information about the number of Canadian Solar common shares they held on relevant dates, as well as each purchase and/or acquisition of Canadian Solar common shares. Documentation of these transactions is required in order to be eligible for compensation from the Canadian Solar class action settlement.
Detailed instructions on how to file claims are available in the Frequently Asked Questions section of the settlement website.
Claim Form
NOTE: If you do not qualify for this settlement do NOT file a claim.
Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.
Claim Form Deadline
5/31/2021
Case Name
Abdulla v. Canadian Solar Inc, et al., Case No. C-710-10, in the Ontario Superior Court of Justice, Canada.
Final Hearing
10/30/2020
Settlement Website
Claims Administrator
Canadian Solar Securities Class Action Settlement Administrator
c/o Epiq Class Action Services Canada Inc.
P.O. Box 507 STN B
Ottawa ON K1P 5P6
info@CanadianSolarSettlement.ca
Phone: 1-833-683-5858
Fax: 1-866-262-0816
Class Counsel
Daniel E.H. Bach
Stefani Cuberovic
Alex Dimson
SISKINDS LLP
Defense Counsel
Michael Statham
Marie-Andrée Vermette
WEIRFOULDS LLP
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