- Shen v. SolarEdge Technologies, Inc., et al.
- Class Period: May 03, 2023 - October 19, 2023
- Date Filed:November 03, 2023
- Jurisdiction:U.S. District Court, Southern District of New York
- Docket Number: 1:23-cv-09748
- Lead Plaintiff Deadline: January 2, 2024
Seek Plaintiff 29
A class action lawsuit captioned Shen v. SolarEdge Technologies, Inc., et al. has been filed against SolarEdge Technologies (“SolarEdge” or the “Company”) (NASDAQ: SEDG) and certain of the Company’s top executive officers alleging that they violated the federal securities laws. The lawsuit seeks to represent all persons and entities who purchased or otherwise acquired SolarEdge securities between May 3, 2023, and October 19, 2023, inclusive (the “Class Period”).
SolarEdge provides inverter solutions for a solar photovoltaic (PV) system. The Company’s offerings include power optimizers, inverters, monitoring services, energy storage and smart energy management via a cloud-based monitoring platform. The Company sells its products worldwide through large distributors, electrical equipment wholesalers, as well as directly to large solar installers and engineering, procurement, and construction firms.
On August 1, 2023, after the market closed, the Company held a conference call with investors and analysts regarding its second quarter 2023 results. During the call, Defendant Zvi Lando (“Lando”) stated that “distribution channels in Europe are experiencing higher than optimal inventory levels, especially as it relates to solar modules.” On this news, the Company’s share price fell $43.96 per share, or 18.3%, to close at $195.51 per share on August 2, 2023, on unusually high trading volume.
Then, on October 19, 2023, after the market closed, SolarEdge issued a press release announcing its preliminary financial results for the third quarter of 2023. In the press release, the Company disclosed that “during the second part of the third quarter of 2023, we experienced substantial unexpected cancellations and pushouts of existing backlog from our European distributors” and “as a result, third quarter revenue, gross margin and operating income will be below the low end of the prior guidance range.”
As a result, the Company also disclosed that it “anticipates significantly lower revenues in the fourth quarter of 2023 as the inventory destocking process continues.” On this news, the Company’s share price fell $31.08, or 27.2%, to close at $82.90 per share on October 20, 2023, on unusually heavily trading volume.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company’s distribution channels in Europe had higher than optimal inventory levels; (2) that, as a result, the Company was experiencing substantial cancellations and pushouts of existing backlog from its European distributors; (3) that, as a result, the Company’s backlog and guidance was overstated; and (4) that, as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased or otherwise acquired SolarEdge securities between May 3, 2023, and October 19, 2023, inclusive, and suffered substantial losses, 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@example.com.
The deadline to apply to the Court to serve as a lead plaintiff in the SolarEdge lawsuit is January 02, 2024.