Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against SolarEdge Technologies, Inc. (SEDG)

Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against SolarEdge Technologies, Inc. (SEDG)

NEW YORK, Dec. 19, 2023 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired SolarEdge Technologies, Inc. (“SolarEdge” or the “Company”) (NASDAQ: SEDG) securities between February 22, 2022 and October 19, 2023, inclusive (the “Class Period”). The lawsuit seeks to recover damages for the Company’s investors under the federal securities laws.

The Complaint alleges that Defendants failed to disclose to investors: (i) the Company’s distribution channels in Europe had higher than optimal inventory levels; (ii) that, as a result, the Company was experiencing substantial cancellations and pushouts of existing backlog from its European distributors; (iii) that, as a result, the Company’s backlog and guidance was overstated; and (iv) that, as a result, Defendants’ statements about the Company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.

On August 1, 2023, the Company held a conference call with investors and analysts regarding its second quarter 2023 results. During the call, the Company’s Chief Executive Officer, Defendant Zvi Lando, stated that “distribution channels in Europe are experiencing higher than optimal inventory levels, especially as it relates to solar modules.” On this news, the Company’s share price fell $43.96 per share, or 18.3%, to close at $195.51 per share on August 2, 2023, on unusually high trading volume.

Then, on October 19, 2023, the Company issued a press release announcing its preliminary financial results for the third quarter of 2023. In the press release, the Company disclosed that “[d]uring the second part of the third quarter of 2023, we experienced substantial unexpected cancellations and pushouts of existing back log from our European distributors” and “[a]s a result, third quarter revenue, gross margin and operating income will be below the low end of the prior guidance range.” As a result, the Company also disclosed that it “anticipates significantly lower revenues in the fourth quarter of 2023 as the inventory destocking process continues.” On this news, the Company’s share price fell $31.08 per share, or 27.2%, to close at $82.90 per share on October 20, 2023, on unusually heavy trading volume.

Investors who purchased or otherwise acquired shares of SolarEdge should contact the Firm prior to the January 2, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].

Please visit our website at http://www.gme-law.com for more information about the firm.