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Robbins Geller Rudman & Dowd LLP Files Class Action Suit against A-Power Energy Generation Systems, Ltd.

^{Published on 2011-07-05 19:20:42 - Market Wire}
 

SAN DIEGO--([ BUSINESS WIRE ])--Robbins Geller Rudman & Dowd LLP (aRobbins Gellera) ([ http://www.rgrdlaw.com/cases/apower/ ]) today announced that a class action has been commenced in the United States District Court for the District of Nevada on behalf of purchasers of A-Power Energy Generation Systems, Ltd. (aA-Powera) (NASDAQ:APWR) common stock during the period between August 27, 2009 and June 27, 2011 (the aClass Perioda).

"certain business transactions that MSCM stated was necessary for MSCM to complete its audit of the Companya™s financial statements for the year ended December 31, 2010 on a timely basis."

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from July 2, 2011. 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/apower/ ]. 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 A-Power and certain of its officers and directors with violations of the Securities Exchange Act of 1934. A-Power is engaged in providing onsite distributed power generation systems and micro power grids for industrial companies.

The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Companya™s business and financial results. As a result of defendantsa™ false statements, A-Powera™s stock traded at artificially inflated prices during the Class Period, reaching a high of $20.55 per share on December 22, 2009.

On June 17, 2011, Seeking Alpha published an article stating, among other things, that A-Power had a history of internal weaknesses over financial controls, which had resulted in an adverse opinion from A-Powera™s independent auditor, and that the Companya™s filings with the State Administration for Industry and Commerce showed that A-Power was reporting significantly lower revenue and profit to the authorities in China than it was reporting in its filings with the SEC.

Then, on June 27, 2011, A-Power issued a press release announcing that MSCM LLP, the Companya™s auditor, had resigned, stating MSCMa™s resignation was due to the Companya™s non-retention of a qualified independent forensic accounting firm to evaluate acertain business transactions that MSCM stated was necessary for MSCM to complete its audit of the Companya™s financial statements for the year ended December 31, 2010 on a timely basis.a Moreover, the Company acknowledged that it would be delayed in filing its Form 20-F for the fiscal year ending December 31, 2010, due in part to MSCMa™s resignation. On this news, after the market closed, NASDAQ halted trading of A-Power stock at $1.67 per share.

According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) A-Power improperly accounted for its related-party transactions such that its financial statements were presented in violation of Generally Accepted Accounting Principles (aGAAPa); and (b) A-Powera™s revenues and income were misstated in violation of GAAP.

Plaintiff seeks to recover damages on behalf of all purchasers of A-Power common stock 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.