Vestas Wind Systems and some of the company’s key executives have been hit with a class-action lawsuit.
Vestas Wind Systems, and some of the company’s key executives, have been hit with a class-action lawsuit.
The lawsuit claims the company gave misleading information, leading to an inflated stock price.
The argument centers around a move by Vestas last fall to change accounting procedures related to how it recognizes revenue on certain projects.
According to the complaint, revenue from supply-and-installation contracts — in which Vestas delivers, installs and commissions turbines for a customer — had been recognized based on the percentage of work completed during that reporting period.
But new international accounting standards called for ending that practice by the end of 2009 in favor of one in which the company would only record the revenue from those contracts once the work was fully completed, according to the complaint.
Read more at Sustainable Business Oregon.
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