JinkoSolar, the Tier-1 Chinese solar company, has reached a $5.05 million settlement in a lawsuit brought in 2011 regarding the purchase of American Depositary Shares pertaining to the alleged misrepresentation of Jinkos compliance with Chinese environmental regulations.
Should the settlement offer be approved by the New York federal court, members of the class action will be entitled to their share of the $5.05 million settlement, less any court-related charges. JinkoSolars insurers will part-fund the monies, with JinkoSolar stumping up the remaining bill while taking no further charges in connection with the case.
For its part, JinkoSolar reiterated in a press statement its denial of any wrongdoing in relation to the allegations, stating that it has decided to reach the settlement to "eliminate the uncertainty, burden and expense of further protracted litigation."
The shares in question were issued between May 13, 2010 and September 20, 2011, prompting a class action lawsuit alleging that JinkoSolars filings with the U.S. Securities and Exchange Commission (SEC) obfuscated the extent of the companys environmental compliance in China.