TORONTO (miningweekly.com) - Canadian silicon producer Timminco said on Friday that another proposed class-action lawsuit has been filed against the company, its majority shareholder Advanced Metallurgical Group, Timminco CEO Heinz Schimmelbusch and other stakeholders.

The lawsuit was filed in the Ontario Superior Court on Thursday and is being brought by Robert Gowan, the company said.

Last month, the firm was served with a proposed C$520-million lawsuit that alleges that the company made misleading statements about its ability to convert metallurgical-grade silicon into solar-grade silicon in a cost-efficient manner for sale to the solar industry.

In a statement on Friday, Timminco said that the latest action contains "the same types of allegations" as the earlier suit.

The company expects that the two actions will be consolidated, and said it intends to "vigorously defend these allegations and the plaintiffs' attempts to get court approval to proceed".

Netherlands-based Advanced Metallurgical Group owns a controlling interest in Timminco.

The Toronto-based company has faced ongoing questions from shareholders and industry participants on whether its proprietary process for producing solar-grade silicon works as well as the firm claims.

The financial crisis and global economic downturn has had a sharply negative effect on the solar-energy industry, and Timminco said last month it was negotiating with customers in the industry, after some buyers terminated their contracts citing "noncompliance" and wanted to have deposits repaid.

The firm has since renegotiated some long-term supply contracts, at lower volumes.

Timminco reported a C$22,3-million loss for the first three months of this year, and has reduced production levels because of flagging demand for its silicon.

Shares in the company fell 5,7% on Friday, to C$1,49 apiece by 15:59 in Toronto.