The litigation centers on a combined $60.76 per share decline triggered by successive analyst downgrades. The lawsuit contends that First Solar maintained a narrative of long-term stability while facing internal challenges, including production cuts at facilities in Malaysia and Vietnam and the loss of 6.6 gigawatts in bookings from BP affiliate defaults.

Market confidence fractured in early 2026 when Jefferies downgraded the stock from Buy to Hold on January 7, citing recurring downward guidance and margin compression. This was followed by a further decline on February 25, when Baird Research moved the stock to Neutral after the company reported missed earnings expectations and weak revenue guidance. Joseph E. Levi, lead counsel for the firm representing the plaintiffs, maintains that these corrections exposed a substantial gap between corporate disclosures and the actual state of the company's international operations. Investors seeking to serve as lead plaintiff must file their applications by August 24, 2026.