First Solar Hit by Class Action Suit, Securities Probe and Underperform Rating
FSLR•First Solar faces a class action lawsuit covering investors who bought between February 26, 2025 and February 24, 2026 as well as a securities fraud investigation. Bernstein reiterated an Underperform rating and Jefferies cut to Hold after the company lowered 2025 guidance, recorded major order de-bookings and saw margin compression.
1. Legal Challenges
First Solar is facing a class action lawsuit filed by investors who purchased shares between February 26, 2025 and February 24, 2026, alleging undisclosed risks and potential losses. Additionally, the company is under a securities fraud investigation exploring whether it misled shareholders about operational performance.
2. Analyst Downgrades
On June 26, Bernstein reiterated its Underperform rating, and Jefferies downgraded the stock from Buy to Hold, reflecting concerns over the company’s near-term outlook. These rating actions follow signs of weakening performance and heighten market scrutiny.
3. Operational Pressures
The firm lowered its 2025 guidance, reported significant order de-bookings and experienced margin compression, indicating shrinking profitability on sales. These developments contributed to a 10.3% share price decline on January 7.
