Vestas facing large US compensation payout

Wind turbine producer stands accused of providing false and misleading information

The Danish wind turbine giant Vestas has reportedly decided to shell out millions of kroner to settle out of court in a case involving a group of unsatisfied US investors.

Henry Rosen, a partner at law firm Robbins Geller Rudman & Dowd  who is one of the eleven lawyers representing the plaintiffs, thinks there is a good chance that the three-year conflict between the wind turbine producer and the angry investors will end in a settlement.

“I am an optimist in terms of something happening in the period leading up to the next status conference in six weeks’ time,” Rosen said according to Jyllands-Posten newspaper.

READ MORE: Vestas proving popular in the United States

Misled shareholders
Exactly how much compensation the plaintiffs are seeking from Vestas has been kept quiet, but Jyllands-Posten reported that they are demanding upwards of 270 million kroner.

The issue between Vestas and the US shareholders flared up in November 2010 when the company changed its accounting methods. This affected the way a 21.6 billion kroner sale was accounted and led to a significant drop in share price.

The Vestas management was subsequently accused of providing false turnover and profit information in 2009 and 2010, thus misleading Vestas stock buyers.