Key Takeaways:
First Solar investors have until Aug. 24 to seek lead plaintiff in a class action alleging tariff misrepresentations inflated FSLR by over $60 a share.
"The complaint alleges First Solar overstated its capacity to manage the impact of U.S. tariff policy and understated how underutilizing its Malaysia and Vietnam plants would hurt fiscal 2026 results," Josh Wilson, a partner at Faruqi & Faruqi, said.
The class period runs Feb. 26, 2025 through Feb. 24, 2026. On Jan. 7, Jefferies downgraded First Solar to Hold from Buy, citing lowered guidance, significant de-bookings and margin compression through 2025. Shares fell $27.67, or 10.29 percent, to close at $241.11. On Feb. 24, the Tempe, Arizona-based manufacturer reported fourth-quarter and full-year 2025 results that missed expectations and issued lower-than-expected fiscal 2026 revenue guidance, citing customer headwinds such as permitting delays. Baird Research downgraded the stock to Neutral from Outperform. Shares fell $33.09, or 13.61 percent, to close at $210.12 on Feb. 25.
The case is pending in the U.S. District Court for the Eastern District of New York under case number 26-cv-03787, seeking damages under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5. The court-appointed lead plaintiff is the investor with the largest financial interest who is adequate and typical of class members. Investors who do not seek appointment can remain absent class members and still share in any recovery.
Multiple firms have issued notices, including Rosen Law Firm, Pomerantz, Levi & Korsinsky, Glancy Prongay Wolke & Rotter and Schall Brown & Schwartz. First Solar, which expanded U.S. nameplate capacity from about 6 gigawatts in 2020 to roughly 13 gigawatts in 2025, reaffirmed fiscal 2026 guidance on Aug. 12, projecting net sales of $4.9 billion to $5.2 billion and adjusted EBITDA of $2.6 billion to $2.8 billion. FSLR closed at approximately $223.69 on Aug. 13, below its 52-week high of $320.95 reached June 3.
The Aug. 24 deadline is an early procedural milestone; the court will then weigh competing lead plaintiff motions. Securities cases can take years to resolve through dismissal, settlement or trial, and the allegations have not been proven in court.
This article is for informational purposes only and does not constitute investment advice.
