Vestas settles US lawsuit
Danish wind-energy giant reaches $5 million settlement regarding false reporting allegations
Danish wind turbine manufacturer Vestas has reached a settlement regarding a 2011 lawsuit filed by US shareholders relating to false reporting and share price inflation.
It was alleged that Vestas’s share price was “inflated during the class period due to purported misstatements and omissions in relation to the company's accounting for supply-and-installation contracts”, according to the Wall Street Journal.
Vestas settled at $5 million – about 27.5 million kroner – though Vestas won’t actually be paying for it, its insurers will.
Vestas reportedly denies all allegations of false reporting, claiming it has not done anything unlawful and should not be held liable.
“Nonetheless, it would be desirable to complete the trial, thus putting an end to the significant costs, burdens and uncertainties associated with continued litigation in the United States,” Vestas chairman Bert Nordberg said in a statement.
Vestas, the largest wind turbine company in the world, wants to leave the matter behind and return to business as usual.
"We look forward to putting this matter behind us so that we can continue our focus on operating the business for the benefit of our customers and our owners," Nordberg said.