Kessler Topaz is investigating claims on behalf of purchasers of SolarEdge Technologies, Inc. (NASDAQ: SEDG) ("SolarEdge") securities between January 5, 2023 and October 19, 2023, related to potential violations of the federal securities laws.
Our investigation focuses on whether Defendants misled investors about the sustainability of the company’s current and future product sales—particularly in Europe. Specifically, the investigation centers on whether Defendants violated the federal securities laws by downplaying rising inventory levels at the company’s distributors, particularly in Europe, and failing to disclose that the company was experiencing substantial cancellations and pushouts of contracted sales despite repeatedly assuring investors that European demand for the company’s products was “very strong” and that SolarEdge had a “robust backlog.”
The truth began to emerge on August 1, 2023, when SolarEdge disclosed that “distribution channels in Europe are experiencing higher than optimal inventory levels, especially as it relates to solar modules.” Then, on October 19, 2023, SolarEdge revealed that the company experienced “substantial unexpected cancellations and pushouts of existing backlog from our European distributors” and that, as a result, “third quarter revenue, gross margin and operating income will be below the low end of the prior guidance range.” The company also revealed that it anticipated “significantly lower revenues in the fourth quarter of 2023 as the inventory destocking process continues.”
If you have any questions or would like to discuss this investigation, please contact Kessler Topaz Meltzer & Check, LLP: Jonathan Naji, Esq. (484) 270-1453 or via e-mail at info@ktmc.com, or fill out the form below.