Cohen Milstein Sellers & Toll PLLC Announces The Investigation Of Suntech Power Holdings Co., Ltd.

Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether Suntech Power Holdings Co., Ltd. (“Suntech” or the “Company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

Class action lawsuits were filed in the U.S. District Courts for the Central and Northern Districts of California by other law firms on behalf of purchasers of the common stock of Suntech Power Holdings Co., Ltd. (NYSE: STP) between August 18, 2010 and July 30, 2012, inclusive (the “Class Period”).

The complaints allege that Defendants misrepresented and/or failed to disclose that: (1) Suntech had not been pledged €560 million in German government bonds from GSF Capital Pte Ltd. (“GSF Capital”), in connection with its May 2010 financing arrangement with the China Development Bank (“CDB”); (2) Suntech lacked internal and financial controls; and (3) as a result, the Company's financial statements were materially false and misleading.

In 2008 Suntech entered into a commitment to invest in Global Solar Fund, S.C.A., Sicar (“GSF”), an investment fund purportedly created to make investments in private companies that own or develop projects in the solar energy sector. GSF is managed by Global Solar Fund Partners S.á.r.l. (“GSF Partners”), the company’s general partner. In exchange for Suntech’s commitment to invest €258 million in GSF, Suntech received an 86% stake in the company. As of December 31, 2011, Suntech had contributed a total of €155.7 million to GSF.

In May 2010, Suntech entered into an arrangement in which it guaranteed payment obligations under finance facilities provided by CDB to Solar Puglia II, S.r.l., an investee company of GSF, amounting to approximately €554.2 million (US $690 million). When Suntech disclosed the guarantee it also reported: “As security for our obligations under the guarantee, we received a pledge of €560.0 million in German government bonds from GSF Capital Pte Ltd., the parent of the general partner of GSF [GSF Partners].”

On July 30, 2012 Suntech warned investors that it “may have been the victim of fraud,” in connection with the German government bond guarantee. Specifically the Company reported that:

. . . the Company is conducting an investigation into a security interest Suntech received in connection with its investment in Global Solar Fund...Based on recent review and inquiries, Suntech suspects that the collateral related to the security interest may not have existed and the Company may have been a victim of fraud.

During a brief July 30 conference call to discuss the matter, one defendant stated:

[E]xternal counsel uncovered inconsistencies in the documentation regarding the German government bonds, which we believe have been placed to [sic] Suntech as security by GSF Capital. GSF Capital is a third-party investor of GSF and the owner of the general partner of GSF. Full investigation made it apparent that these bonds may never have existed and that GSF Capital and its principal may have committed fraud . . . .

The Company further reported that it was suing Javier Romero, its former sales representative who manages GSF Capital, the company that pledged the German bonds as collateral. Suntech also indicated that it may delay its second quarter earnings report “while it examines the financial impact of the incident, which involves the biggest of nine affiliated companies listed in its annual 20-F filing to U.S. regulators.”

The price of Suntech shares fell from $1.57 to $1.34 on July 30, 2012 and closed at $1.13 on July 31.

Cohen Milstein encourages all investors who purchased STP common stock between August 18, 2010 and July 30, 2012 or former employees with information concerning this matter to contact the firm.

If you are a STP shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein’s Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at stoll@cohenmilstein.com. If you wish to serve as lead plaintiff, you must move the Court no later than October 1, 2012 to request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must decide that your claim is typical of the claims of other class members, and that you will adequately represent the class. Your share in any recovery will not be enhanced or diminished by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may retain Cohen Milstein Sellers & Toll PLLC or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member.

Cohen Milstein Sellers & Toll PLLC has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, Chicago, Philadelphia and West Palm Beach, and is active in major litigation pending in federal and state courts throughout the nation.

The firm’s reputation for excellence has repeatedly been recognized by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen Milstein Sellers & Toll PLLC has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total over a billion dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.

If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:

Steven J. Toll, Esq.Tyler GaffneyCohen Milstein Sellers & Toll PLLC1100 New York Avenue, N.W.West Tower, Suite 500Washington, D.C. 20005Telephone: (888) 240-0775 or (202) 408-4600Email: stoll@cohenmilstein.com; tgaffney@cohenmilstein.com

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Copyright Business Wire 2010

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