TORONTO (miningweekly.com) – Canadian silicon producer Timminco confirmed on Tuesday that it has accepted the serving of a proposed class action, launched in the Ontario Superior Court last week.

The plaintiff will need to get the permission of the court to bring the class action, which alleges that Timminco and others made “certain misrepresentations” in 2008 regarding the company's solar-grade silicon production process.

“Timminco intends to vigorously defend these allegations and the plaintiff's attempt to get court approval to proceed with the action,” the firm said in a tightly worded statement on Tuesday.

The C$520-million lawsuit 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 addition to Timminco, certain officers and directors of the company are also named as defendants, including CEO and chairman of the board of directors Dr Heinz C.Schimmelbusch for knowingly misleading investors about Timminco's growth and profit potential,” Toronto law firm Kim Orr Barristers said in a statement last week.

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

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.

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