Lieff, cabraser, heimann & bernstein, llp announces class action
lawsuits against american superconductor corporation
San francisco--(business wire)--the law firm of lieff, cabraser, heimann & bernstein, llp announces that class action lawsuits have been brought on behalf of all persons which purchased or otherwise acquired the securities of american superconductor corporation (“amsc” or the “company”) (nasdaq:amsc) between july 29, 2010 and april 5, 2011, inclusive (the “class period”). if you purchased amsc securities during the class period you may move the court for appointment as lead plaintiff by no later than june 6, 2011. a lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. your share of any recovery in the litigation will not be affected by your decision of whether to seek appointment as lead plaintiff. you may retain lieff cabraser, or other attorneys, as your counsel in the litigation. amsc shareholders who wish to learn more about the actions and how to seek appointment as lead plaintiff may visit lieff cabraser’s website at http://www.lieffcabraser.com/securities-investor-fraud/case/463/american-superconductor-corporation-securities-class-litigation or contact sharon lee of lieff cabraser toll free at (800) 541-7358. background on amsc class litigation the actions, pending in the united states district court for the district of massachusetts, are brought against amsc and certain of its officers and directors for violations of the securities act of 1934. amsc, headquartered in devens, massachusetts, is a power technology company that provides wind turbines 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 actions allege that amsc and certain of its executive officers failed disclose that: (1) the company 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 despite the fact that sinovel had not been paying for certain prior shipments. as a result, the company was improperly recognizing revenue on certain contracted shipments to sinovel and the company’s revenues were overstated. on april 5, 2011, the company disclosed that on march 31, 2011, the last day of amsc’s 2010 fiscal year, sinovel refused to accept contracted shipments from amsc, and that amsc believed that sinovel intended to reduce its level of inventory before accepting any further contracted shipments. the company further disclosed that as a result, its earnings for the 2010 fiscal fourth quarter and year would be substantially below its previous forecasts. furthermore, the company disclosed that sinovel had yet to pay amsc for certain contracted shipments that occurred during the 2010 fiscal year. as a result of the accumulated aged accounts receivable and sinovel’s refusal to accept march deliveries, amsc informed investors that 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. in response to this news, the price of amsc stock fell $10.41 per share, or 41.84%, to close at $14.47 on april 6, 2011, on an unusually heavy trading volume. about lieff cabraser lieff, cabraser, heimann & bernstein, llp, with offices in san francisco, new york and nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. since 2003, the national law journal has selected lieff cabraser as one of the top plaintiffs’ law firms in the nation. in compiling the list, the national law journal examined recent verdicts and settlements in addition to overall track records. lieff cabraser is one of only two plaintiffs’ law firms in the united states to receive this honor for the last eight consecutive years. for more information about lieff cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com. this press release may be considered attorney advertising in some jurisdictions under the applicable law and ethical rules.
