Another New York-based legal firm has launched a class action lawsuit against Chinese solar manufacturer JA Solar.
Bronstein, Gewirtz & Grossman LLP yesterday called for U.S. shareholders who bought stock in the formerly Nasdaq-listed company between December 11, 2017 and July 16 last year to contact it with a view to joining the suit.
Following the move by fellow New York firm Pomerantz LLP yesterday, BG&G claimed holders of U.S. American Depositary Shares were asked to vote on last year’s proposed merger between JA Solar and its holding company JASO Acquisition without being given complete information about the merged company’s intentions.
The law firm alleges the new company – which pv magazine reported at the time would pass into the ownership of an investment consortium – intended to relist on the Shenzhen stock exchange in China after leaving New York’s Nasdaq exchange, “contrary to representations in the proxy” –with the proxy a format which permitted shareholders to vote on the merger without attending in person a meeting held to consider the move.
BG&G claims the resulting Shenzhen listing, labelled a “backdoor listing” by Pomerantz, ensured U.S. shareholders voted through the proposed merger after reaching an agreement on an offer for their stocks which was significantly below what they have subsequently listed for in Shenzhen.
JA Solar has not responded to pv magazine’s request for comment on the matter.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.