Opinion ID: 219025
Heading Depth: 3
Heading Rank: 1

Heading: Pre-Class Period Disclosures

Text: Production problems at the Pasadena plant periodically have adversely impacted MEMC's financial results. Historically, MEMC updated investors about its problems. On September 4, 2007, MEMC filed an SEC Form 8-K (8-K) to disclose a construction incident at the Pasadena plant which would negatively impact MEMC's financial results for the period ending September 30, 2007, by approximately 5%. On October 25, 2007, MEMC filed another 8-K to state the previously disclosed construction incident caused [MEMC] to lose well over a week's worth of production, miss [MEMC's] cost projections by the double digit millions, and delay [MEMC's] expansion. On January 24, 2008, MEMC held an earnings call in conjunction with the filing of another 8-K. At the earnings call, Gareeb indicated maintenance issues at the Pasadena plant would adversely impact earnings for the quarter ending March 31, 2008. On April 3, 2008, MEMC filed an 8-K indicating MEMC's Pasadena plant needed premature maintenance to remove chemical deposits. MEMC disclosed the maintenance resulted in much lower than anticipated output, and caused the company to not achieve the financial targets for the first quarter as disclosed on January 24, 2008. On April 24, 2008, MEMC filed an 8-K and commented on its first quarter results. MEMC opined, given the unplanned issues at the Pasadena plant, it is prudent to be extra cautious regarding our polysilicon output expectations. Also on April 24, 2008, the Pasadena plant suffered a gas leak, interrupting polysilicon production. MEMC immediately issued a press release disclosing the leak and assuring investors that MEMC did not anticipate any impact to the financial targets provided earlier today as a result of this incident. On April 29, 2008, MEMC issued a follow-up press release, confirming the Pasadena plant resumed production on April 25, 2008.