Tuesday, April 8, 2008

LDK says SEC won't take action against company

LOS ANGELES, April 7 (Reuters) - Chinese solar wafer maker LDK Solar Co Ltd on Monday said it was informed by the U.S. Securities and Exchange Commission's staff that it would not recommend action against the company.

LDK last October revealed it was being questioned by the SEC over its inventory accounting after its former financial controller had alleged that it overstated its polysilicon inventories by 250 tons.

The former executive's allegations also spawned several shareholder lawsuits.

On Monday, LDK said in an SEC filing that the Commission's staff had informed the company on March 24 that it would not recommend any enforcement action related to the review.

The news came three months after LDK said an internal probe of the company's accounting by its audit committee found no material errors.

LDK said in the filing that based on the SEC staff's findings, "it is not probable that an unfavorable outcome will occur upon the ultimate resolution of the pending litigation for this matter."