Overview

A class action lawsuit has been filed against Nextracker, Inc. (“Nextracker” or the “Company”) (NASDAQ: NXT) and certain of the Company’s former senior executive officers alleging violations of the federal securities laws.  The Nextracker class action lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired Nextracker common stock between February 1, 2024, and August 1, 2024, both dates inclusive (the “Class Period”).  Investors have until February 25, 2025, to seek appointment as lead plaintiff in the Nextracker class action lawsuit.

Nextracker is a supplier of software solutions and products that enable solar panels to follow the sun’s movements across the sky to optimize utility power plant performance.  In February 2023, Nextracker completed its initial public offering (“IPO”), spinning off from Flex Ltd. (“Flex”), an international electronics manufacturing services and original design manufacturer.  In January 2024, Nextracker announced that Flex had completed the spin-off and sale of its remaining interests in the Company.

Nextracker’s customers include engineering, procurement, and construction firms (“EPCs”), as well as solar project developers and owners.  Developers originate projects, select and acquire sites, obtain permits, select contractors, negotiate power offtake agreements, and oversee the building of projects.  EPCs design and optimize the system, procure components, build and commission the plant, and operate the plant for a limited time until transfer to a long-term owner.  Owners, which are often independent power producers, own and operate the plant, typically as part of a portfolio of similar assets.  Owners generate cash flow through the sale of electricity to utilities, wholesale markets, or end users.

The solar tracker market increases energy production and improves the levelized cost of energy, the average cost of electricity generation over the lifetime of an energy asset.  Thus, the majority of utility-scale projects installed today in mature markets use solar traction, and the adoption of the technology is growing in developing markets.  The United States is the Company’s most important and profitable market, generally accounting for more than two-thirds of its business.

In order to incentivize the installation of solar facilities in the United States, the U.S. government passed the Inflation Reduction Act of 2022 (“IRA”).  The IRA entitles manufacturers that support clean energy in the United States with a tax credit for each clean energy component domestically produced and sold by a manufacturer.  As a result of the proliferation in solar installations following the passage of the IRA, leading up to the IPO, Nextracker reported robust growth.

The Nextracker class action lawsuit alleges that Defendants, throughout the Class Period, made false and/or misleading statements and/or failed to disclose that: (1) the impact of project delays on Nextracker’s business, financial results, and prospects was far more severe than represented to investors; (2) permitting and interconnection delays had materially impaired Nextracker’s ability to convert backlog into revenue at historical conversion rates; (3) Nextracker had been unable to offset the negative impact from project delays through increased client demand and the purported ability to pull forward its other projects in the manner represented by Defendants; (4) Nextracker did not possess the competitive advantages which purportedly shielded it from industry-wide headwinds or the ability to effectively offset the adverse effects of project delays as claimed by Defendants; and (5) consequently, Defendants lacked a reasonable basis for their positive statements about Nextracker’s business, financial results, and prospects.

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If you purchased or otherwise acquired Nextracker common stock between February 1, 2024, and August 1, 2024, both dates inclusive, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at [email protected]. 

The deadline to apply to the Court to serve as lead plaintiff in the Nextracker class action lawsuit is February 25, 2025.