First Solar, Inc. (NASDAQ:FSLR) Investor Files Lawsuit Against Directors Over Alleged Breaches Of Fiduciary Duties
San Diego, April 9, 2012 (Shareholders Foundation) -- A current investor in NASDAQ:FSLR shares filed a lawsuit against certain current and former directors of First Solar over alleged breaches of fiduciary duty from June 1, 2008 to March 7, 2012.
The plaintiff alleges that a manufacturing defect in some of First Solar’s solar modules manufactured from June 2008 and June 2009 caused the modules to experience premature power loss once installed and First Solar determined the cause of the defect in June 2009, which lead to a voluntary remediation program beyond the standard limited warranty pursuant to which First Solar would cover certain costs of remediation efforts The plaintiff claims that Between June 1, 2008 and March 7, 2012 certain directors cause First solar to issue improper statements in tis public filing, press release and conference calls that touted First Solar’s positive financial results, significant growth, and represented positive forward guidance. Meanwhile, so the plaintiff, defendants allegedly failed to disclose, among other things, that the actual and full impact of the above described defect on the company’s earnings and actual costs the company was incurring in repairing and replacing the defective solar modules that resulted from that defect.
The plaintiff says the directors knew and had reason to suspect the First Solar’s reporting and disclosure system was not functioning properly and that the statements being issued between June 1, 08 and March 7, 2012 were materially false and/or misleading.
The plaintiff claims that defendants consciously disregarded their duty of oversight and their duty to ensure that a reasonable reporting system was in place, but rather allowed First Solar to issue allegedly materially fales and misleading statements and when the truth was revealed, First Solar’s market cap fell by approximately $512.8million and shortly after that a lawsuit by investors against First Solar over alleged securities laws violations was filed.
The plaintiff alleges that the defendants’ breaches of fiduciary duties have caused substantial damages to First Solar and certain insiders utilized their knowledge of First Solar’s true health and allegedly inflated stock price for their own benefit by selling over $378million worth of First Solar common stock while in possession of material, adverse non-public information.
Shares of First Solar, Inc. (NASDAQ:FSLR) declined from over $300 in 2008, respectively over $190 in 2009, to as low as $20.52 on April 5, 2012.