AMSC Secures Settlement in Sinovel Wind Technology Dispute
The AMSC Sinovel settlement marks a major milestone in a long-running legal battle over technology theft. Under the agreement, Sinovel Wind Group Co. Ltd. will pay $57.5 million in two installments. In addition, a U.S. federal judge imposed a $1.5 million fine, bringing the case closer to full resolution.
AMSC’s Growth and Sudden Setback
American Superconductor Corporation (AMSC), formerly American Superconductor Inc., built its business on high-temperature superconductor wire and advanced wind turbine control systems. By fiscal 2010, the company reported a $16 million profit, employed about 700 people, and expanded globally.
However, in 2011, Sinovel—its largest customer at the time—refused a key shipment. Investigations later confirmed that Sinovel acquired AMSC’s proprietary technology through a former employee. As a result, AMSC suffered losses exceeding $800 million.
AMSC Sinovel Settlement Follows Years of Legal Action
After the incident, AMSC reduced its workforce by 30%, cutting approximately 150 jobs. Meanwhile, the company pursued legal action in both U.S. and Chinese courts.
In 2013, the U.S. Department of Justice filed charges against Sinovel. Later, on January 24, 2018, a U.S. jury ruled in favor of AMSC. This decision strengthened AMSC’s position and helped lead to the current settlement.
During this time, AMSC’s stock price dropped below $3 per share. It later rebounded to around $8, driven by improvements in grid and renewable energy solutions. However, shares fell below $6 following news of the settlement and sentencing.
Settlement Signals a New Chapter
AMSC President and CEO Daniel P. McGahn described the outcome as a victory for the rule of law. He noted that the agreement allows both companies to move forward and close a difficult chapter.
The settlement highlights the importance of protecting intellectual property in the global energy sector.
Learn more about AMSC at: https://www.amsc.com/
Learn more about Sinovel at: http://www.sinovel.com/
