FIRST SOLAR, INC. (NASDAQ:FSLR) Files An 8-K Other EventsItem 8.01.Other Events
Legal Proceedings – Class Action
Set forth below is a supplement to the description of the class action lawsuit contained in Note 11. “Commitments and Contingencies” under the heading “Legal Proceedings – Class Action” of the condensed consolidated financial statements included in the Quarterly Report on Form 10-Q filed by First Solar, Inc. (the “Company”) with the Securities and Exchange Commission on April 27, 2018.
On March 15, 2012, a purported class action lawsuit titled Smilovits v. First Solar, Inc., et al., Case No. 2:12-cv-00555-DGC, was filed in the United States District Court for the District of Arizona (the “Arizona District Court”) against the Company and certain of its current and former directors and officers (the “Defendants”). The complaint was filed on behalf of persons who purchased or otherwise acquired the Company’s publicly traded securities between April 30, 2008 and February 28, 2012 (the “Class Action”). The complaint generally alleges that the Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by making false and misleading statements regarding the Company’s financial performance and prospects. The action includes claims for damages, including interest, and an award of reasonable costs and attorneys’ fees to the putative class.
On August 11, 2015, the Arizona District Court granted Defendants’ motion for summary judgment in part and denied it in part, and certified an issue for immediate appeal to the United States Court of Appeals for the Ninth Circuit (the “Court of Appeals”). The plaintiffs’ motion for summary judgment was denied. On August 20, 2015, the Company filed a petition for interlocutory appeal with the Court of Appeals. Upon the filing of this petition, the Arizona District Court entered a stay until the Court of Appeals decided whether to take the appeal and, if it did, until the appeal is decided. On November 18, 2015, the Court of Appeals issued an order granting permission to proceed with the appeal and setting a briefing schedule. On January 31, 2018, the Court of Appeals issued an opinion affirming the order of the Arizona District Court partially denying summary judgment. On March 16, 2018, the Company filed a petition for panel rehearing or rehearing en banc with the Court of Appeals. On May 7, 2018, the Company’s petition was denied.
About FIRST SOLAR, INC. (NASDAQ:FSLR)
First Solar, Inc. is a provider of photovoltaic (PV) solar energy solutions. The Company designs, manufactures and sells PV solar modules with thin-film semiconductor technology, and also develops, designs, constructs and sells PV solar power solutions. The Company operates through two segments: components and systems. The Company’s components segment designs, manufactures and sells solar modules, which convert sunlight into electricity. The Company’s systems segment provides PV solar power systems or solar solutions for systems, which use the Company’s solar modules. The Company provides operations and maintenance (O&M) services to plant owners that use solar modules manufactured by the Company or by other third-party manufacturers. The Company has approximately 30 manufacturing lines around the world and over 2.8 gigawatts (GW) of annual manufacturing capacity with lines having a production capability of approximately 2,500 modules per day.