Another New York-based legal firm has launched a class action lawsuit against Chinese solar manufacturer JA Solar.
Bronstein, Gewirtz & Grossman LLP yesterday called for U.S. shareholders who bought stock in the formerly Nasdaq-listed company between December 11, 2017 and July 16 last year to contact it with a view to joining the suit.
Following the move by fellow New York firm Pomerantz LLP yesterday, BG&G claimed holders of U.S. American Depositary Shares were asked to vote on last year’s proposed merger between JA Solar and its holding company JASO Acquisition without being given complete information about the merged company’s intentions.
The law firm alleges the new company – which pv magazine reported at the time would pass into the ownership of an investment consortium – intended to relist on the Shenzhen stock exchange in China after leaving New York’s Nasdaq exchange, “contrary to representations in the proxy” –with the proxy a format which permitted shareholders to vote on the merger without attending in person a meeting held to consider the move.
BG&G claims the resulting Shenzhen listing, labelled a “backdoor listing” by Pomerantz, ensured U.S. shareholders voted through the proposed merger after reaching an agreement on an offer for their stocks which was significantly below what they have subsequently listed for in Shenzhen.
JA Solar has not responded to pv magazine’s request for comment on the matter.