The lawsuit alleges that First Solar management maintained a narrative of favorable trade conditions and manageable international facility risks throughout 2025, even as the company grappled with production cuts in Malaysia and Vietnam. The legal action contends these representations artificially inflated share prices, masking the true financial impact of underutilization and onshoring costs.

Market confidence began to fracture on January 7, 2026, when Jefferies downgraded the stock from Buy to Hold, citing repeated guidance revisions and the loss of 6.6 gigawatts in bookings. Shares fell 10.29% following the announcement. The decline deepened on February 25, 2026, after Baird Research downgraded the company to Neutral in the wake of missed Q4 earnings expectations. The stock dropped an additional 13.61%, closing at $210.12. Attorney Joseph E. Levi claims these corrections represent the market finally absorbing the scope of issues that were allegedly omitted from earlier company disclosures.