SOURCE: Brower Piven, A Professional Corporation

March 28, 2011 17:07 ET

Brower Piven Encourages Investors Who Have Large Financial Losses From Investment in Vestas Wind Systems A/S to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the May 17, 2011 Lead Plaintiff Deadline

STEVENSON, MD--(Marketwire - March 28, 2011) - Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the District of Colorado on behalf of purchasers of the securities of Vestas Wind Systems A/S ("Vestas" or the "Company") (PINKSHEETS: VWDRY) (PINKSHEETS: VWSYF) during the period between October 27, 2009 and October 25, 2010, inclusive (the "Class Period").

No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than May 17, 2011 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages or to serve as a Lead Plaintiff.

The complaint accuses the defendants of violations of the Securities Exchange Act of 1934. The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding Vestas Wind Systems A/S' financial revenues and earnings, as well as its fiscal year 2010 financial guidance. As a result of defendants' false and misleading statements regarding the Company's financial performance and outlook, Vestas' American Depository Receipts ("ADRs") 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 -- particularly in the United States -- would have to be deferred. On this news, the Company'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 Committee's Interpretation 15, Agreements for the Construction of Real Estate ("IFRIC 15"), 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 ("IAS"). In reaction to this news, Vestas' 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 Vestas' financial outlook and as a result they lacked a reasonable basis to provide financial guidance for the Company's fiscal year 2010.

If you have suffered a net loss for all transactions in Vestas Wind Systems A/S securities during the Class Period (including shares or possibly calls purchased during, but not sold until after the end of the Class Period or possibly put options sold but not covered until after the end of the Class Period), you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 60 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Stevenson, Maryland
    410/415-6616
    Email Contact