Court approves $5M Vestas shareholder lawsuit settlement

A Portland, Ore., court has approved a $5 million settlement in a lawsuit filed by shareholders in federal court in Denver against Danish wind turbine maker Vestas Wind Systems A/S (OMX: VWS), the company said Tuesday.

Plaintiffs in the class-action lawsuit filed in U.S. District Court for the District of Colorado contended that Vestas’ share price was inflated because of alleged misstatements and omissions related to the company’s accounting for supply-and-installation contracts. The settlement resolves the lawsuit filed by U.S. shareholders.

The U.S. District Court in Portland approved the proposed settlement, which will become final in 30 days, Vestas said. The company’s U.S. headquarters is in Portland.

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As part of this settlement, the plaintiffs’ claims against Vestas’ individual officers and directors were dropped, Vestas said. The company denied wrongdoing alleged by the lawsuit and said that it made appropriate financial disclosures.

“It has been deemed desirable for Vestas to resolve the claims in order to end the substantial expenses, burdens and uncertainties associated with continued litigation in the USA,” Vestas said in a statement.