Robbins LLP, a prominent law firm specializing in shareholder rights, has issued a reminder to investors concerning a class action lawsuit filed on behalf of individuals and entities who acquired SolarEdge Technologies, Inc. (NASDAQ: SEDG) securities between February 22, 2022, and October 19, 2023. SolarEdge is recognized for providing inverter solutions for solar photovoltaic (“PV”) systems, including power optimizers, inverters, monitoring services, energy storage, and smart energy management via a cloud-based monitoring platform.
Allegations of Withheld Information
During the mentioned class period, the complaint alleges that defendants failed to disclose critical information to investors. These alleged omissions include:
The Company’s distribution channels in Europe maintained higher-than-optimal inventory levels.
Consequently, the Company faced substantial cancellations and pushouts of existing backlog from European distributors.
The Company’s backlog and guidance were overstated.
Impact on SolarEdge’s Share Price
The plaintiff contends that on August 1, 2023, during a conference call discussing second-quarter 2023 results, defendant Zvi Lando disclosed the challenges, stating that “distribution channels in Europe are experiencing higher than optimal inventory levels.” Following this revelation, the Company’s share price experienced a significant decline of $43.96 per share, or 18.3%, closing at $195.51 per share on August 2, 2023.
Further Disclosures and Market Response
Subsequently, on October 19, 2023, SolarEdge issued a press release disclosing preliminary financial results for the third quarter of 2023. In this release, the Company revealed that unexpected cancellations and pushouts of existing backlog from European distributors impacted third-quarter revenue, gross margin, and operating income, falling below the low end of the prior guidance range. Anticipating lower revenues in the fourth quarter of 2023 due to the ongoing inventory destocking process, the Company’s share price further declined by $31.08 per share, or 27.2%, closing at $82.90 per share on October 20, 2023.
Legal Implications and Shareholder Rights
Investors are reminded of their potential involvement in this class action and the opportunity to seek lead plaintiff status. Robbins LLP encourages affected parties to explore their rights and consider participating in the ongoing legal proceedings against SolarEdge Technologies, Inc.
Source: businesswire.com
