Knox v. Yingli Green Energy Holding Co.

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT’S MOTION TO DISMISS [93]

I. INTRODUCTION

This is a putative class action for securities fraud under sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Plaintiffs Noe Barocio, Salvador Barocio, and Cindy Conybear allege that Defendant Yingli Green Energy Holding Company *956 Limited (“Yingli”), a company that sells solar energy products, defrauded its investors by making false and misleading public statements about (1) the company’s involvement in a government subsidy program, and (2) the collectability of debts owed by is customers. Yingli now moves to dismiss Plaintiffs’ Consolidated Amended Complaint, which the Court GRANTS IN PART and DENIES IN PART. (ECF No. 93.)

II. FACTUAL BACKGROUND

Yingli is a publicly traded corporation that manufactures and sells solar energy products. (Consol. Am. Compl. (“CAC”) ¶ 2, ECF No. 92.) Prior to 2010, Yingli sold its products mainly to European companies. (Id. ¶¶ 3-4, 30-31.) Beginning in 2010, however, Yingli’s sales gradually shifted from Europe to China. This shift was due in part to a solar energy subsidy program offered by the Chinese government called “Golden Sun.”…