US court approves $5m Vestas settlement

UNITED STATES: Vestas has secured approval for the $5 million settlement of a lawsuit from a pension fund claiming the company issued false information regarding its revenue and earnings.

Vestas is still being persued in Denmark over misreporting allegations
Vestas is still being persued in Denmark over misreporting allegations

The case, which was filed against Vestas's US subsidiary and certain directors in 2011, contained allegations of false financial reporting between October 2009 and October 2010.

In June this year, Vestas agreed to pay $5 million to the unnamed plaintiffs to settle the case. This has now been approved by the District Court, Portland Division, and will become final in 30 days unless an appeal is lodged.

At the end of 2010, the company changed its accounting procedures, with the claimants in the case asserting that the changes hid elements of the company's poor performance. It said this lead to an inflation of Vestas' share price.

Vestas said it expressly denies the allegations, and said it had settled "in order to end the substantial expenses, burdens and uncertainties associated with continued litigation".

The company's insurer will pay the settlement in full, which will also cover the directors named in the lawsuit.

Deminor Recovery Services is still pursuing Vestas in a separate case in Denmark on behalf of disgruntled investors. It has been focusing on the claim that Vestas shifted around 1.8GW of orders from the 2009 results into 2010 figures.

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