LOS ANGELES, April 21, 2011 (GLOBE NEWSWIRE) -- Glancy Binkow & Goldberg LLP announces that all persons or entities who purchased or otherwise acquired the securities of American Superconductor Corporation ("AMSC" or the "Company") (Nasdaq:AMSC) between November 2, 2010, and April 5, 2011, inclusive (the "Class Period"), have until June 6, 2011 to move the Court to serve as Lead Plaintiff in the securities fraud class action lawsuit. The case filed by Glancy Binkow & Goldberg LLP, Lenartz v. American Superconductor Corporation, et al., No. 11-cv-10582-NG, has been assigned to the Honorable Nancy Gertner, United States District Judge for the District of Massachusetts.
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201‑9150 or Toll Free at (888) 773‑9224, by email to shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com.
AMSC provides wind turbine designs and electrical control systems primarily in North America, Europe and the Asia-Pacific. During the Class Period, AMSC's quarterly revenues were largely derived from one primary customer – Sinovel Wind Group Co., Ltd. ("Sinovel"), a manufacturer of wind turbines based in China. Sales to Sinovel represented 79% and 73% of the Company's total revenues reported for the 2010 fiscal second and third quarters, respectively.
The Complaint charges AMSC and certain of its executive officers with violations of federal securities laws. Specifically, defendants misrepresented and/or failed to disclose that: (1) AMSC was providing Sinovel with contracted shipments in excess of its needs; (2) Sinovel was not paying AMSC for certain contracted shipments; (3) AMSC was continuing to provide Sinovel with contracted shipments although Sinovel was not paying for certain prior shipments; (4) as a result, AMSC was improperly recognizing revenue on certain contracted shipments to Sinovel; (5) as a result, AMSC's revenues were overstated; and (6), the Company lacked adequate internal and financial controls.
On April 5, 2011, AMSC disclosed that on March 31, 2011, the last day of AMSC's 2010 fiscal year, that Sinovel refused to accept contracted shipments, and AMSC believed Sinovel intended to reduce its level of inventory before accepting any further contracted shipments. As a result, AMSC's earnings for the 2010 fourth quarter and fiscal year would be substantially below previous forecasts. As a result of accumulated aged accounts receivable due to payment delays and Sinovel's recent refusal to accept March deliveries, AMSC informed investors it was reviewing the appropriateness of the timing of its revenue recognition on approximately $56 million of unpaid shipments in the second, third and fourth quarters of fiscal 2010. On this news, the Company's shares declined $10.41 per share, or 41.84%, to close on April 6, 2011, at $14.47 per share, on unusually heavy trading volume.
The Private Securities Litigation Reform Act of 1995 ("PSLRA") requires the Court to appoint a "Lead Plaintiff" in this case. Any person or group who suffered a loss as a result of purchasing AMSC securities between November 2, 2010, and April 5, 2011, may ask the Court to be appointed as Lead Plaintiff, but must file a motion no later than the June 6, 2011 deadline.
Glancy Binkow & Goldberg LLP is a law firm with significant experience in prosecuting class actions, substantial expertise in actions involving corporate fraud, and is representing AMSC shareholders in this litigation.
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 Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201‑9150, Toll Free at (888) 773‑9224, by e‑mail to shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com.