NEW YORK, Oct. 12, 2007 (PRIME NEWSWIRE) -- The Brualdi Law Firm announces that a securities class action lawsuit has been commenced in the in the United States District Court for the Northern District of California on behalf of all persons who purchased or otherwise acquired the American Depository Shares ("ADS") of LDK Solar Co., Ltd. ("LDK" or the "Company") (NYSE:LDK) between August 1, 2007 and October 3, 2007, inclusive, (the "Class Period").
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Tali Leger, Director of Shareholder Relations at The Brualdi Law Firm, 29 Broadway, Suite 2400, New York, New York 10006, by telephone toll free at (877) 495-1877 or (212) 952-0602, by email to tleger@brualdilawfirm.com or visit our website at http://www.brualdilawfirm.com/
The Complaint charges that LDK, a manufacturer of multicrystalline solar wafers, and certain of its officers and directors violated federal securities laws. The Complaint alleges that, prior to and during the Class Period, Defendants issued false statements describing LDK's business fundamentals, financial results and earnings growth potential. Specifically, Defendants concealed that LDK's internal controls were flawed, preventing it from accurately measuring or reporting its inventory. As a result, the Company's inventories were materially overstated, causing inflation in LDK's assets, earnings and earnings per share ("EPS") reported during the Class Period.
On October 3, 2007, it was reported that LDK's Financial Controller, Charley Situ, had resigned stating that LDK lacked internal controls and that the Company's reported inventory of polysilicon was overstated by 25%. Then on October 4, 2007, LDK disclosed that it would have an independent outside auditor investigate Situ's allegations. In response to this news, the Company's ADS, which traded as high as $76.75 on September 27, 2007, plummeted to as low as $44.98, and closed at $48.30 on October 4, 2007.