First Solar investors face Aug. 24 deadline in securities class action

A securities class action has been filed against First Solar Inc. alleging the solar panel maker misled investors about its ability to manage US tariffs, the complaint said.

"First Solar overstated its capacity to mitigate the impact of tariffs on its operations," the complaint filed by Bronstein, Gewirtz & Grossman LLC said. The lawsuit, filed July 5 in federal court, seeks damages for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

The class period covers 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. The stock fell $27.67, or 10.3%, to close at $241.11. On Feb. 24, First Solar reported fourth-quarter results that missed expectations by a wide margin and issued lower-than-expected 2026 revenue guidance, citing customer headwinds including permitting delays under the Trump administration. Shares dropped $33.09, or 13.6%, to $210.12.

The complaint alleges First Solar understated the extent to which its responses to US tariff policy — including the intentional underutilization of production facilities in Malaysia and Vietnam and attempted relocation of production to the US — would hurt its 2026 fiscal year performance. The company's public statements were materially false and misleading throughout the class period, the lawsuit claims.

The lawsuit specifically alleges that First Solar's management knew its Malaysia and Vietnam facilities were critical to its cost structure but publicly downplayed the risks of shifting production. The company's ability to navigate US tariffs on imported solar components was a key factor in its financial guidance throughout 2025, the complaint said.

At least three law firms — Schall Law, Kaplan Fox & Kilsheimer, and Bronstein, Gewirtz & Grossman — have announced similar actions. Investors who purchased First Solar securities during the class period may move the court no later than Aug. 24 to serve as lead plaintiff. Those who suffered losses do not need to be lead plaintiff to share in any potential recovery.

The class action adds legal overhang to a stock already under pressure from tariff uncertainty and policy headwinds. First Solar's attempts to relocate production to the US, a key part of its tariff mitigation strategy, face execution risk that the company failed to disclose, according to the complaint. The broader clean energy sector, including peers such as Enphase Energy and SunPower, has faced similar policy-driven volatility as the Trump administration's permitting delays and trade policies reshaped the industry landscape. Investors will watch for any settlement or dismissal motions in the coming months.

This article is for informational purposes only and does not constitute investment advice.