Key Takeaways:
First Solar faces an Aug 24 lead plaintiff deadline in a securities class action after analyst downgrades erased $60.76 per share.
"When analyst expectations are built on incomplete or misleading company disclosures, the resulting corrections can cause significant investor harm," Joseph E. Levi, founding partner at Levi & Korsinsky, said.
The complaint, filed in the Eastern District of New York, covers investors who bought First Solar shares between Feb 26, 2025 and Feb 24, 2026. Jefferies cut the stock to Hold from Buy on Jan 7, sending shares down $27.67, or 10.29 percent, to $241.11. Baird downgraded First Solar to Neutral from Outperform on Feb 25 after fourth-quarter results missed expectations, pushing shares down $33.09, or 13.61 percent, to $210.12.
The combined $60.76 decline erased billions in market value across 107 million outstanding shares. Investors seeking to lead the case must move the court by Aug 24, 2026.
The lawsuit alleges Chief Executive Officer Mark R. Widmar and Chief Financial Officer Alexander R. Bradley overstated First Solar's ability to manage U.S. tariff policy and understated how idling production in Malaysia and Vietnam, plus the onshoring push, would hurt 2026 performance. The company lost 6.6 gigawatts of bookings when BP affiliates defaulted, and its South Carolina finishing facility required about $330 million in total program spend, including $260 million in capital expenditures and $70 million in non-capitalized relocation costs. Tariffs reached 24 percent and 46 percent before being reduced to 10 percent, compressing margins.
The complaint asserts violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5. Widmar and Bradley are named as control persons under Section 20(a). The executives certified under Sarbanes-Oxley that periodic filings contained no untrue statements, which the lawsuit contends was false because they characterized the facility idling as temporary while knowing the drag would extend through fiscal 2026.
Multiple firms are soliciting lead plaintiffs, including Levi & Korsinsky, Kaplan Fox & Kilsheimer, Pomerantz, and The Rosen Law Firm. Appointment as lead plaintiff is not required to share in any recovery, and cases proceed on a contingency basis with no upfront fees.
The Aug 24 deadline gives institutional holders, including pension funds with fiduciary duties, roughly three weeks to weigh participation. First Solar reaffirmed full-year 2026 sales guidance of $4.9 billion to $5.2 billion after second-quarter earnings beat estimates by 37 percent, with EPS of $3.92.
This article is for informational purposes only and does not constitute investment advice.
