Bloomberg News

AMSC Says Chinese Court Denied Sinovel Motion to Move Suit

February 15, 2012

(Updates with closing share price in last paragraph.)

Feb. 15 (Bloomberg) -- American Superconductor Corp., a U.S. maker of wind-turbine components, said a Chinese court denied a motion by Sinovel Wind Group Co. to transfer a lawsuit to arbitration.

The Beijing No. 1 Intermediate People’s Court yesterday rejected a request from China’s largest wind-turbine maker to move the case to the Beijing Arbitration Commission, Devens, Massachusetts-based AMSC said today in a statement.

AMSC says Sinovel, formerly its largest customer, violated sales contracts and stole intellectual property. The civil suit is one of three seeking more than $1.2 billion in damages. A provincial court on Feb. 3 dismissed the smallest case, which will be heard in arbitration.

“Sinovel is trying to get everything to go to arbitration and not be sued in a regular court, and in this case the court said no,” Theodore O’Neill, an analyst at Wunderlich Securities Inc. in New York, said today in an interview. “It’s one for Sinovel, one for American Superconductor. It continues to be a Mexican hat dance.”

Yesterday’s ruling is for a software copyright infringement suit, seeking a cease and desist order and damages of $6 million. The decision couldn’t be independently confirmed at this time.

The earlier ruling, by the Hainan Province No. 1 Intermediate People’s Court, was for a copyright infringement case seeking $200,000 in damages.

AMSC fell 2.3 percent to $4.61 at the close in New York. The shares have dropped 83 percent in the past year.

--With assistance from Justin Doom in New York. Editors: Will Wade, Randall Hackley

To contact the reporter on this story: Ehren Goossens in New York at egoossens1@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net


Cash Is for Losers
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus