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Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Vestas Wind Systems A/S

^{Published on 2011-03-18 11:15:48 - Market Wire}
 

SAN DIEGO--([ BUSINESS WIRE ])--Robbins Geller Rudman & Dowd LLP (aRobbins Gellera) ([ http://www.rgrdlaw.com/cases/vestas/ ]) today announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the District of Colorado on behalf of purchasers of Vestas Wind Systems A/S (aVestasa) (OTC:VWDRY) (OTC:VWSYF) securities during the period between October 27, 2009 and October 25, 2010 (the aClass Perioda).

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffa™s counsel, Darren Robbins of Robbins Geller at 800-449-4900 or 619-231-1058, or via e-mail at [ djr@rgrdlaw.com ]. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at [ http://www.rgrdlaw.com/cases/vestas/ ]. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges Vestas and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Vestas engages in the development, manufacture, sale, and maintenance of wind technology products a" i.e., wind turbines a" which utilize wind to generate electricity.

The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Companya™s financial revenues and earnings, as well as its fiscal year 2010 financial guidance. As a result of defendantsa™ false and misleading statements regarding the Companya™s financial performance and outlook, Vestasa™ American Depository Receipts (aADRsa) and ordinary shares traded at artificially inflated prices throughout the Class Period, reaching a high of $26.00 and $78.05 per share, respectively, on November 9, 2009.

On August 17, 2010, Vestas issued its second quarter 2010 results and downwardly revised its 2010 financial outlook for revenue and earnings, admitting that hundreds of millions of Euros of wind system contracts expected to be recognized in 2010 a" particularly in the United States a" would have to be deferred. On this news, the Companya™s ADRs and ordinary shares trading in the United States declined 22.5% in one day. Two months later, on October 26, 2010, before the U.S. markets opened, the Company admitted that it had failed to adopt the International Financial Reporting Interpretations Committeea™s Interpretation 15, Agreements for the Construction of Real Estate (aIFRIC 15a), a new accounting standard effective January 1, 2010, and as a result its 2010 financial statements would likely require correction as they were not in compliance with International Accounting Standards (aIASa). In reaction to this news, Vestasa™ securities dropped another 10%.

According to the complaint, the true facts, which were known by defendants but concealed from the investing public during the Class Period, were as follows: (a) defendants caused Vestas to improperly account for its revenue in violation of IAS by failing to timely adopt IFRIC 15; and (b) defendants failed to account for the effect of IFRIC 15 in determining Vestasa™ financial outlook and as a result they lacked a reasonable basis to provide financial guidance for the Companya™s fiscal year 2010.

Plaintiff seeks to recover damages on behalf of all purchasers of Vestas securities during the Class Period (the aClassa). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Robbins Geller, a 180-lawyer firm with offices in San Diego, San Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Robbins Geller Web site ([ http://www.rgrdlaw.com ]) has more information about the firm.