Wind turbine maker Vestas accused of inflating stock price

Wind-turbine maker Vestas Wind Systems and its top executives are the focus of a class-action lawsuit filed in U.S. District Court in Denver, The Denver Business Journal is reporting.

The suit claims the company gave misleading information that led to an inflated stock price.

The Denmark-based wind turbine manufacturer has a production plant in Pueblo. Colo. Sen. Michael Bennet, a Democrat, toured the plant yesterday.

The lawsuit’s argument centers around a move by Vestas last fall to change accounting procedures related to how it recognizes revenue on certain projects.

According to the complaint, revenue from supply-and-installation contracts – in which Vestas delivers, installs and commissions turbines for a customer – had been recognized based on the percentage of work completed during that reporting period.