TORONTO, May 14 /CNW/ - Kim Orr Barristers P.C. has filed a $520 million
class action on behalf of investors of Timminco Limited ("Timminco"), a
company listed on the Toronto Stock Exchange under symbol TIM. In addition to
Timminco, certain officers and directors of the company are also named as
defendants, including Chief Executive Officer and Chairman of the Board of
Directors Dr. Heinz C. Schimmelbusch for knowingly misleading investors about
Timminco's growth and profit potential.
Beginning in early 2008, Timminco and Schimmelbusch made continuous
representations in the company's public disclosure regarding its ability to
convert metallurgical-grade silicon into solar-grade silicon in a
cost-efficient manner for sale to the solar industry.
Following criticism by certain analysts and the media, Timminco released
a report by Photon Consulting in May 2008 that made positive statements about
Timminco and its growth and profit potential. Timminco's stock price rose
sharply in early to mid 2008 following these statements.
In August 2008, Timminco admitted that its solar-grade silicon production
process was flawed. The Photon Report was subsequently withdrawn by Timminco
because "some of the material factors or assumptions originally used to
develop the forward-looking information in the Photon Report, including in
respect of revenues, production line volumes and costs, may no longer be
valid." The stock price subsequently collapsed as a result. Photon Consulting
LLC is also named as a defendant in the class action.
The Statement of Claim in the class action alleges that the defendants
knew or ought to have known that the representations regarding the company's
ability to produce low-cost, high-quality silicone in commercial quantities
were false or misleading. The Plaintiff will also seek leave of the court to
bring a class action pursuant to the Civil Liability for Secondary Market
Disclosure provisions of the Securities Act (Bill 198).
The class action is being brought on behalf of all investors who acquired
Timminco's shares between March 17, 2008 up to and including November 11,
For further information:
For further information: regarding the lawsuit, please contact Victoria
Paris of Kim Orr Barristers P.C. at (416) 596-1414 or firstname.lastname@example.org