First Solar Faces Class Action Lawsuit Amid Stock Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 26 2026
0mins
Source: PRnewswire
First Solar Inc's stock has dropped by 3.00%, hitting a 20-day low, as investor concerns mount following a series of class action lawsuits.
The lawsuits allege that First Solar made misleading statements regarding its ability to manage tariff impacts, leading to significant investor losses. Additionally, the company announced production cuts at its facilities in Malaysia and Vietnam, which further exacerbated market fears about its operational stability. Following a downgrade from Jefferies, the stock has seen increased volatility, reflecting a lack of confidence in its future performance.
The ongoing legal challenges and production issues may continue to weigh on First Solar's stock, as investors remain cautious amid the uncertainty surrounding the company's ability to navigate the current market dynamics.
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Analyst Views on FSLR
Wall Street analysts forecast FSLR stock price to rise
23 Analyst Rating
18 Buy
4 Hold
1 Sell
Moderate Buy
Current: 233.060
Low
150.00
Averages
280.35
High
335.00
Current: 233.060
Low
150.00
Averages
280.35
High
335.00
About FSLR
First Solar, Inc. is a photovoltaic (PV) solar technology and manufacturing company. It is focused on enabling power generation needs with its advanced, thin film PV technology. The Company's primary segment is its modules business, which involves the design, manufacture, and sale of CdTe solar modules, which convert sunlight into electricity. Third-party customers of the segment include system developers, independent power producers, utilities, commercial and industrial companies, and other system owners and operators. The Company's products include the Series 7 Module and Series 6 Plus module. Its Series 6 Plus module is a glass laminate approximately 4ft x 6ft in size that encapsulates thin film PV semiconductor materials. Its Series 7 module has a larger form factor of approximately 4ft x 7ft in size. The Series 6 Plus and Series 7 modules had an average power output of 464 watts and 532 watts, respectively.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Import Policy Impact: The U.S. investigation into polysilicon imports could widen access, aiding First Solar's scaling efforts and potentially boosting its stock price, with a decision expected in August according to analysts.
- Market Consensus Support: Among the 42 analysts covering First Solar, 25 have rated the stock as buy or strong buy, indicating a widespread positive outlook that further bolsters investor confidence.
See More
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- Earnings Miss: On February 24, 2026, First Solar reported its fourth quarter and full year 2025 results, revealing earnings significantly missed expectations and issued lower revenue guidance for 2026, causing the stock to fall another $33.09, or 13.6%, to close at $210.12, exacerbating investor losses.
- False Statement Allegations: The class action lawsuit alleges that throughout the class period, the company made materially false and misleading statements, failing to disclose the adverse impacts of U.S. tariff policies on its business, which misled investors regarding the company's prospects and may expose it to legal liabilities.
See More
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- Analyst Rating Distribution: Among the 35 analysts covering First Solar, 21 have a ‘Buy’ rating, 12 a ‘Hold’, and 2 a ‘Sell’, suggesting a generally positive outlook for the company, especially in light of potential policy changes.
- Positive Market Reaction: First Solar shares climbed nearly 6% on Monday, driven by a bullish Wall Street note that anticipates significant market performance improvements if the U.S. government makes favorable decisions regarding tariffs on polysilicon.
- Profitability Challenges: Despite the overall optimism, Bernstein initiated coverage with an ‘Underperform’ rating, arguing that the company's profitability heavily relies on government tax credits, which could pose risks to its long-term growth amid potential policy shifts.
See More
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- Allegations of False Statements: The complaint alleges that throughout the class period, defendants made materially false and misleading statements and failed to disclose adverse facts about the company's business and prospects, potentially leading investors to misjudge the company's future performance.
- Impact of Tariff Policies: The lawsuit specifically claims that defendants overstated First Solar's ability to manage the impact of U.S. tariff policies and understated the negative effects of underutilizing production facilities in Malaysia and Vietnam on projected performance for fiscal year 2026, which could result in a decline in company performance.
- Investor Rights Protection: Investors have until August 24, 2026, to request to be appointed as lead plaintiff, with the law firm promising to represent investors on a contingency fee basis, ensuring that they do not incur additional costs in the litigation process.
See More
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- SK Hynix IPO Plans: South Korean memory giant SK Hynix is looking to raise $28 billion through a Nasdaq listing, which, while maintaining its primary listing in South Korea, will enhance its capital access and broaden its investor base.
- Acquisition Impact: Solstice Advanced Materials is acquiring Element Solutions for $14.5 billion, creating a specialty chemicals powerhouse focused on the semiconductor industry, which will enhance its competitive position and industry consolidation capabilities.
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