First Solar, Inc. (FSLR) Made Misrepresentations Regarding its Series 6 Solar Module
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired shares of First Solar, Inc. (NASDAQ: FSLR) common stock between February 22, 2019 and February 20, 2020. First Solar manufactures solar energy panels and powerplants.
According to the complaint, First Solar launched a new PV solar panel module, the Series 6, in 2017. First Solar laid out an “aggressive” Series 6 cost per watt reduction target, and touted the success of the Series 6 program. For example, in August 2019, First Solar executives confirmed that the Company had achieved the Series 6 cost per watt objective it had set for the first half of 2019. In October 2019, First Solar claimed that it was “slightly ahead of the roadmap.” These and similar statements made throughout the class period were false. In reality, the defendants knew or recklessly disregarded that the Series 6 solar module was not commercially ready at the time of its release, had a component that was failing in the field and causing fires, was not able to hit its projected and touted wattage targets, and had an inconsistent output-all of which put First Solar at a competitive disadvantage.
As news of these deficiencies became known, First Solar’s stock price began to decline. Then, on February 20, 2020, First Solar announced that it was exploring a sale of its Project Development business and acknowledged it was experiencing “challenges with regard to certain aspects of the overall cost per watt” and that the Company would not be realizing its cost per watt goals. The Company then stated it would no longer be disclosing a discrete cost per watt for its Series 6 units because customers had “start[ed] to hold [the Company] accountable to a cost-plus model … [a]nd so we have purposely moved away from giving a discrete cost per watt.” On this news, First Solar’s stock declined $8.73 per share, or nearly 15%, to close at $50.59 per share on February 21, 2021.
If you purchased shares of First Solar, Inc. (FSLR) between February 22, 2019 and February 20, 2020, you have until March 8, 2022, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
