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American Superconductor Corporation Message Board

  • barrygeo barrygeo Jul 18, 2013 3:22 PM Flag

    Serving Sinovel a summons

    This legal glitch is so silly I literally laughed when I read about it. You can find the story if you pull up Sinovel's stock chart on Yahoo:

    "Old Mail Rule Helps Pangang, Kolon Elude U.S. Charges
    By Karen Gullo & Tom Schoenberg - 2013-07-18T18:20:02Z
    China’s Pangang Group Co. and Korea’s Kolon Industries Inc. (120110) have eluded U.S. criminal charges of trade-secret theft for months. Unlike fugitive security contractor Edward Snowden, they aren’t hiding from authorities.
    Pangang and Kolon can’t be forced yet to face the accusations in court because federal rules dating to the 1940s require prosecutors to issue a summons the old-fashioned way -- by mailing it to a U.S. address. The companies said they don’t have offices, employees or agents in the U.S. and can’t be served. Federal judges in California and Virginia have mostly agreed."

    ... end quote. Near the end of the article it mentions the Sinovel case:

    "On June 27, prosecutors filed an indictment against Sinovel Wind Group Co. (601558), a Chinese wind-turbine company, in federal court in Madison, Wisconsin. Sinovel and two executives are accused of stealing trade secrets from its former U.S. supplier. Sinovel has until Aug. 16 to challenge the government’s attempts to serve the company.
    On July 8, prosecutors outlined the various steps it took to alert Sinovel to the charges, including mailing a summons to people who the government said are registered agents in Delaware and Texas."

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Good to know the US Postal system is being used for something useful !

    • Ah yes but what seems different is that the letter of July 8 was addressed to Sinovel's lawyers. It addresses Sinovel's lawyers who had seemed to say they needed more time before entering plea. It seems to me that engaging US counsel means they have been contacted but that their lawyers were using delaying tactics. The other companies, if you do some research, claimed no US nexus. I am not worried.

      • 1 Reply to david_mikosz
      • The U.S. case against Sinovel is meaningless in terms of amsc getting restitution. Even if the summons holds up in court, and Sinovel is found guilty, fined, and ordered by U.S. courts to pay amsc $1 billion, Sinovel will just ignore the order. Sinovel has no U.S. assets for the Feds to sieze.

        What the U.S. case against Sinovel means is that Sinovel can forget about any ideas they may have had about ever doing business in the U.S.

        AMSC's only hope for justice ($$$$ restitution) will be if the Chinese courts surprise us and find in amsc's favor. I've lost most my expectations for that, but I guess you never know. I continue to hold my shares purchased at $2.64 in hopes of a turnaround for amsc, absent any legal rewards. Yes, cash burn will continue, but I believe things will get better.

        It's not a bottomless pit. We don't know how much Philips got for Superpower, but I remember one source speculated it was about $80 million. The company owns their Devens property. Although mortgaged to the $10 million term lender, when that's payed off there is no more mortgage.

        good luck

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