On the go: The Mineworkers’ Pension Scheme and the British Coal Staff Superannuation Scheme have secured a $350m (£268m) settlement from a class action against a photovoltaic solar panel producer.
The schemes acted as lead plaintiffs in a class action against First Solar, and alleged that the company made false and misleading statements about defects plaguing its products, and failed to disclose material adverse facts about its business, operations and prospects.
The schemes, represented by Robbins Geller Rudman & Dowd, claimed that during 2008 and 2012, First Solar executives discovered a manufacturing defect that caused the company’s modules to suffer rapid power loss, and a design defect that caused rapid power loss in hot climates.
According to a statement, the defendants denied all the lead plaintiffs’ claims but reached a settlement just prior to the trial starting, which is subject to approval by the US District Court for the District of Arizona.
A spokesperson for the schemes said: “We are pleased that a $350m financial settlement has been reached on behalf of all members of the class.
“We believe it is important that asset owners hold companies and executives to account when securities fraud is discovered, and this approach forms part of our commitment to being a good steward of our members’ pension assets.”
Mark Solomon, a partner at Robbins Geller Rudman & Dowd, noted that settlement “appears to be the largest securities class action recovery ever achieved in the District of Arizona.
He said: “The recovery rate will be more than 10 times the national average and the amount has been recognised by market observers as ‘truly astonishing’ and ‘massive’ in size.”
He noted that the settlement, which serves “both as a measure of compensation for First Solar’s victimised investors, and also to deter others from participating in fraudulent misconduct”, was only possible because the schemes’ stewards were willing to stand up and spearhead the cases.
