JinkoSolars stock has declined by more than 40 percent of its value in the wake of the environmental claims, which were brought to light by protests and civil disobedience at JinkoSolars facility at Haining, China. The facility was subsequently closed until the environmental concerns were addressed.
In its case summary, the Howard G. Smith offices claim that JinkoSolar "misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company stated it was in compliance with all applicable environmental regulations, when, in fact, the Company knew that it was not."
After admitting the lack of compliance and on accepting responsibility for the damage, the case summary continues, JinkoSolars share price dropped 42 percent in a single week.
JinkoSolar resumed operations at its Haining facility in October 11. Operations were initially suspended on September 17. The company attributes the environmental contamination to a fluoride leak from a waste storage warehouse, due to "extreme and unforeseen weather conditions."
JinkoSolar now says that it is "deeply committed" to working with the affected village of Hongxiao, to restore relations between the two.
pv magazine has contacted JinkoSolar for comment.