Spector, Roseman & Kodroff, P.C. Announces The Filing of A Class Action Suit Against LDK Solar

By: Legal - Law News

The law firm of Spector, Roseman & Kodroff, P.C. announces that a securities class action lawsuit was commenced in the United States District Court for the Northern District of California, on behalf of purchasers of the American Depository Shares (“ADSs”) of LDK Solar Co. Ltd. ("LDK" or the "Company") (NYSE: LDK- news) between August 1, 2007 through October 3, 2007, inclusive (the "Class Period").

The Complaint alleges that defendants violated the federal securities laws by disseminating materially false and misleading statements contained in press releases and filings with the Securities and Exchange Commission (“SEC”) during the Class Period which concealed that the Company's inventories were overstated by an estimated 25%. The overstatement of inventories resulted in the overstatement of LDK's reported assets, earnings and earnings per share ("EPS") during the Class Period.

On October 3, 2007, following a report that LDK's financial controller had resigned and that the Company's reported 1,000 tonne inventory of polysilicon was overstated by 25%, LDK's share price fell almost 25% LDK's former controller, Charley Situ, reported these discrepancies to both the U.S. SEC and the Company's external auditor, KPMG. The Company responded to these accusations by promising to investigate the matter. The Company has since stated it will have an independent outside auditor investigate Situ's allegations. The Company's ADSs, which traded as high as $76.75 on September 27, 2007, plummeted $16.66, or 24.39%, to close at $51.65 on October 3, 2007.

If you purchased LDK securities during the Class Period, you may, no later than December 10, 2007, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the “largest financial interest” in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the “largest financial interest,” and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth.

If you have sustained substantial losses in LDK securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at classaction@srk-law.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.

Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm’s reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered through judgments and settlements on behalf of thousands of defrauded shareholders and companies.

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