A Pennsylvania-based law firm has filed suit against First Solar Inc. on behalf of investors, stating that the company's executives have not communicated critical information in accordance with securities law.
The complaint alleges that First Solar's executives ‘issued false and misleading statements and/or failed to disclose material adverse facts about the company's business, operations and prospects,’ says the Law Offices of Howard G. Smith, the firm filing the complaint.
According to the complaint, First Solar failed to disclose ‘the full impact of certain solar module manufacturing flaws on the company's earnings’ and did not properly recognize revenue in its systems business. The suit also says First Solar ‘lacked adequate internal and financial controls.’
First Solar is also currently under investigation by the U.S. Securities & Exchange Commission for potential violations of disclosure rules.