SolarEdge Technologies ($SEDG) Investor Settlement

The parties have reached an agreement to settle the case, but the terms are still being finalized. You can submit your application now, and it will be processed once claims filing opens.

S.D. New York

Court

1:23-cv-09748

Case number

02/23/2023

Class period Start

10/19/2023

Class period End

SolarEdge Technologies has agreed to a tentative settlement to resolve investor claims that it misled the market about weakening demand in Europe, rising inventory, and the sustainability of its reported revenues.

Outline:

On February 13, 2023, SolarEdge said demand in Europe was strong and channel inventory was low. Through March, May, June, August, and September 2023, the company kept promoting healthy demand and sell-through even as investors say distributors were taking excess product. On August 1, 2023, SolarEdge disclosed excess inventory and slower growth, and on October 19, 2023, it revealed unexpected cancellations and pushouts from European distributors. The case has now moved to a tentative settlement.

Timeline:

February 13, 2023: SolarEdge reported record 2022 revenue and said demand in Europe remained strong and channel inventory was relatively low.
March 13, 2023: At the ROTH Conference, SolarEdge said Europe would likely be one of its fastest-growing geographies in 2023.
May 3, 2023: SolarEdge reported record solar revenue for the quarter and said European channel inventory was low while sell-through was at record levels.
August 1, 2023: SolarEdge said Europe was being affected by excess inventory and slower growth and gave lower guidance for the next quarter, $SEDG fell 18.3% after that disclosure.
September 21, 2023: SolarEdge again told analysts that underlying demand in Europe was very strong and distributor sell-through continued to grow.
October 19, 2023: SolarEdge disclosed substantial unexpected cancellations and pushouts from European distributors and said third-quarter results would miss prior guidance, $SEDG fell 27.2% after the disclosure.
November 1, 2023: SolarEdge said solar revenue had fallen to $725.3 million in the third quarter and confirmed a sharp drop in European sell-through.
March 2026: SolarEdge agrees to settle the lawsuit.
Background:

SolarEdge Technologies has agreed to a tentative settlement to resolve investor claims that it misled the market about weakening demand in Europe, rising inventory, and the sustainability of its reported revenues.

Investors say that by early 2023 demand in Europe was already slowing, but SolarEdge continued pushing distributors to take more product so it could keep reporting strong quarterly results. They also claim this practice drove both channel inventory and SolarEdge’s own finished-goods inventory sharply higher. According to the case, finished-goods inventory rose from about $202 million at the start of 2023 to about $731 million by the third quarter.

Even as those pressures built, SolarEdge continued telling the market that demand in Europe was strong, inventory levels were low or normal, and sell-through remained healthy. The dispute focuses on statements made in earnings calls, investor conferences, and other public comments throughout 2023.

On August 1, 2023, SolarEdge disclosed that the market was being affected by excess inventory and slower growth in Europe, and the stock fell 18.3% the next day. Then, on October 19, 2023, the company said it had seen substantial unexpected cancellations and pushouts from European distributors and would miss prior guidance, and $SEDG fell another 27.2% on October 20.

Investors say those later disclosures revealed the true extent of the slowdown, the inventory buildup, and the pressure on SolarEdge’s revenues. The matter has now moved to a tentative settlement, although the available source does not state the amount or the next key dates.

What Can Investors Expect Now?

SolarEdge has agreed to a tentative settlement to resolve investor claims tied to its Europe demand, inventory, and revenue disclosures.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section.

Case Type

US Securities Class Action

Case Status

Tentative Settlement

Alleged Offence

Mismanagement,

Misleading Statements,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Filing date

11/03/2023

Lead Plaintiff Deadline

01/02/2024

Plaintiffs

Daphne Shen

Attorneys

Glancy Prongay & Murray and the Law Offices of Howard G. Smith

Defendants

Zvi Lando, Ranen Faier

Judge

Gregory H Woods

Trades matching type

FIFO

Frequently Asked Questions

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