First Solar, Inc.
Class Period: Apr 30, 2008 to Feb 28, 2012
Lead Plaintiff Deadline: May 14, 2012 + Deadline passed
Summary of Case:
A securities class action has been filed against First Solar, Inc. ("First Solar" or the "Company") on behalf of all who purchased First Solar securities between April 30, 2008 and February 28, 2012, both dates inclusive (the "Class Period"). This case has been filed in the USDC - District of Arizona.
The Complaint alleges that on February 29, 2012, the Company announced its financial results for the fourth quarter and year ended December 31, 2011. Specifically, First Solar reported a decrease of $345 million in net sales for the fourth quarter, as compared to the previous quarter, "primarily due to the timing of revenue recognition in our systems business and lower for module-only sales." In addition, the Company disclosed various charges including a charge of $164 million for warranty payments to replace equipment that caused premature power loss in certain panels. The Company spent $125.8 million in the fourth quarter on warranty claims and has put aside $37.5 million to cover future claims.
On these revelations, First Solar shares declined $4.10 per share or 11%, to close at $32.30 per share, on February 29, 2012.
Throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose: (1) the full impact of certain manufacturing flaws on the Company's earnings; (2) that the Company was improperly recognizing revenue concerning certain products in its systems business; (3) that the Company lacked adequate internal and financial controls; and (4) that, as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.