SolarEdge Technologies ($SEDG) Investor Settlement
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.
Frequently Asked Questions
All persons and entities who purchased or otherwise acquired SolarEdge common stock from February 13, 2023, to October 19, 2023, both dates inclusive.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
If 100% of investors file their claims, the average payout will be $1.49 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $5.96 per share.
If you're eligible, you can file your claim directly from this case page by clicking the "Collect Payout" button.
More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed — or file manually for this case.
11th.com is an investor recovery company that helps investors track and collect securities class action settlements. We will:
1. Prepare documents for your payout.
2. Audit the claim and make sure you get the maximum possible payout.
3. File a claim with the settlement administration.
4. Correspond with the settlement administration to resolve emerging issues.
5. Deliver payout directly to your brokerage account.
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.