First Solar faces fresh legal scrutiny, shares trade below recent highs on Nasdaq

By Anna Wagner, Analysts & Consensus desk. Reviewed prior to publication on 2026-06-25, 14:50.

First Solar Inc. (US3364331070) is back in focus on Nasdaq after two U.S. law firms announced fresh legal action tied to the solar group's recent earnings disappointments and guidance cuts. Both Robbins LLP and the Law Offices of Frank R. Cruz now flag securities fraud claims and a proposed class action for First Solar investors, referencing the sharp February 2026 share price reaction to weak full-year 2025 numbers and 2026 guidance. Robbins LLP investor notice

What the new lawsuits allege

The first major step came via Robbins LLP, which on June 24, 2026 disclosed that a class action complaint had been filed on behalf of investors who bought or otherwise acquired First Solar securities between February 26, 2025 and February 24, 2026. Robbins LLP investor notice The filing targets alleged violations of federal securities laws in connection with the company's communication around demand trends, de-bookings and margin development during that period. Robbins LLP investor notice

According to Robbins LLP, investor losses are linked in particular to the market reaction on February 25, 2026, when First Solar shares dropped by $33.09, or 13.61 percent, to close at $210.12 following the publication of weak fourth-quarter and full-year 2025 earnings and lower-than-expected 2026 revenue guidance. Robbins LLP investor notice The complaint claims investors were misled over time about the extent of customer headwinds and the sustainability of margins in key facilities.

Parallel securities fraud probe and Jefferies downgrade

A second legal front opened as the Law Offices of Frank R. Cruz announced a separate securities fraud investigation into First Solar, also aimed at investors who lost money in the wake of the company's guidance cuts and earnings miss. Frank R. Cruz investigation notice The Los Angeles-based firm highlights the same February 24, 2026 earnings release and February 25 price drop, positioning its probe as an effort to determine whether federal securities laws were violated. Frank R. Cruz investigation notice

The same notice underscores an earlier catalyst from January 7, 2026, when Jefferies downgraded First Solar shares from Buy to Hold and highlighted that during 2025 the company had lowered guidance, faced significant de-bookings and experienced margin compression. Frank R. Cruz investigation notice Jefferies also pointed to international facilities remaining a pain point while tariffs exist and to underutilization at those plants, accompanying the downgrade with data on a one-day share price decline of $27.67, or 10.3 percent, to a January 7 closing level of $241.11. Benzinga summary of Jefferies downgrade

Analyst views and recent performance

Beyond the legal developments, Wall Street analyst sentiment on First Solar remains mixed. A recent round-up of solar sector research shows that 23 analysts currently cover the stock, with 18 ratings in the Buy camp and a moderate buy consensus, but with notable dissent from houses such as Bernstein. Solar ETF and analyst overview Bernstein has initiated coverage of First Solar with an Underperform rating and a price target of $217, signaling concern over valuation and execution risks even as the broader solar ETF shows robust performance. Solar ETF and analyst overview

Price data compiled by PandaForecast for the latest completed session on June 24, 2026 show First Solar shares trading in a range between an intraday low of $244.30 and a high of $257.99, with an opening print at $249.72 and closing value at $248.36 on Nasdaq. PandaForecast session data for FSLR Trading volume in that session stood at 1,497,518 shares, while the consensus one-year price target cited in the same dataset sits close to current levels at $247.30, underlining the cautious tone in the analyst community. PandaForecast session data for FSLR

Capacity expansion and industry positioning

In parallel with these legal and market developments, First Solar continues to pursue capacity expansion and technology improvements to defend its position in the global photovoltaic industry. A recent analysis from Zacks notes that the company is expanding manufacturing capacity, a move expected to support future revenue growth by allowing more volume of its proprietary thin-film solar modules to reach customers. Nasdaq article on First Solar capacity expansion The report characterizes First Solar as a leading global provider of comprehensive PV solar energy solutions, emphasizing the role of its thin-film semiconductor technology in utility-scale solar projects. Nasdaq article on First Solar capacity expansion

Zacks also points out that, over the past three months, First Solar shares have advanced 28.8 percent compared with a 14.2 percent gain for its industry group, reflecting investor interest in U.S.-based solar manufacturers during a period of heightened policy focus on clean energy. Nasdaq article on First Solar capacity expansion At the same time, the analysis highlights competitive pressure from global manufacturers, especially in regions where lower-cost crystalline silicon modules and shifting tariff regimes challenge First Solar's pricing power.

The product behind the stock

First Solar generates most of its revenue by designing, manufacturing and selling utility-scale photovoltaic modules based on cadmium telluride thin-film technology. Its current Series 7 module line is engineered to deliver high energy yield in hot and humid environments, targeting large solar power plant developers who value efficiency under real-world conditions more than laboratory peak output. The company complements module sales with project-level services such as plant design, performance modeling and long-term maintenance support.

Where the stock trades today

The First Solar shares (US3364331070) last traded on Nasdaq at $248.36 on 2026-06-24, based on the latest available closing data, with the price quoted in U.S. dollars.

Disclaimer: This article provides publicly available information on First Solar, Inc. for general informational purposes only and does not constitute investment advice, a recommendation to buy or sell securities, or a solicitation of any transaction. Investors should conduct their own research and consider consulting a qualified financial advisor before making investment decisions.

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