NEW YORK–(BUSINESS WIRE)–Bragar Eagel & Squire, PC, a nationally recognized stockholder rights law firm, announced that a class action lawsuit has been filed against SolarEdge, Inc. (“SolarEdge” or the “Company”) (NASDAQ: SEDG) in the United States Southern District Court of New York on behalf of all persons and entities that purchased or acquired SolarEdge securities between August 6, 2022 and October 19, 2022, both dates are inclusive (the “Class Period”). Investors have until January 3, 2023 to apply to the Court to be appointed lead plaintiff in the case.
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SolarEdge is incorporated in the state of Delaware and its principal executive offices are located at 700 Tasman Dr., Milpitas, California 95035. SolarEdge provides solar power optimization and photovoltaic (“PV”) monitoring solutions for in solar energy systems, offering optimizers, inverters, monitoring equipment, tools, and accessories for power harvesting, conversion, and efficiency while serving customers around the world. Two main components of SolarEdge’s solar energy system are its power optimizers and inverters. A power optimizer can be described as a direct current to direct current (“DC to DC”) converter technology developed to maximize the energy harvest from a solar PV system. The inverter, also called the “brain” of the solar energy system, converts the DC power (or “raw” energy) from the PV modules into alternating current (“AC”) power (or “usable” energy) that run. in a user’s home.
SolarEdge is quick to admit that inverters are of “critical” importance because while inverters account for less than 10% of the system’s cost, the components handle 100% of the system’s production and are “critical for high term financial performance of a PV system because it can maximize energy production and reduce lifetime costs.” Since SolarEdge began commercial shipping of solar energy systems in 2010, more than 3.7 million inverters and 89 million power optimizers have been shipped worldwide.
Throughout the Class Period, Defendants made materially false and misleading statements, and failed to disclose materially adverse facts about the Company’s business, operations, and compliance with policies. In particular, the Defendants made false and/or misleading statements and failed to disclose to investors that: (i) the designs of the power optimizers, inverters, and components thereof used in the development of the SolarEdge products may have originated and been diverted from Ampt LLC (“ Ampt ”), a competitor in the renewable energy industry; (ii) Ampt has made claims against the Company for misappropriation of Ampt’s patented technology, (iii) evidentiary support exists for allegations that SolarEdge misappropriated certain design-related patents and development of the Company’s power optimizers and inverters; (iv) as a result, SolarEdge faces the threat of regulatory and/or court action, which may prohibit the import, sale, and marketing of its power optimizers and inverters, including solar energy systems with product; which in turn (v) seriously threatens SolarEdge’s ability to monetize its solar energy systems with power optimizers and inverters in the United States and generate revenue; and (vi) certain revenues generated from the sale of power optimizers and inverters may be based on SolarEdge’s unlawful activities, including the misuse of Ampt’s patented designs.
The investing public became aware of the alleged patent infringement on July 28, 2022 when the US International Trade Commission (“ITC”) agreed to review a patent infringement lawsuit filed by Ampt against SolarEdge on July 28, 2022. The news of the ITC’s vote to institute an investigation into SolarEdge on August 29, 2022 caused a precipitous and immediate drop in the price of SolarEdge shares. While SolarEdge’s stock price opened at $284.23 on August 29, 2022, news of the ITC vote resulted in SolarEdge’s stock price falling approximately 1.4% to close at $279.46 on August 29, 2022. This news caused SolarEdge to lose $265 million in market capitalization on August 29, 2022.
But the bad news is not over yet. On October 19, 2022, investors learned the weight of the ITC’s investigation when Judge Connolly of the District Court of Delaware stayed a parallel proceeding filed against SolarEdge by Ampt and based on similar claims. allegation, styled Ampt, LLC v. SolarEdge Tech., Inc. ., no. 1:22-cv-00997 (D. Del.) (“Delaware Proceeding”) pending an ITC investigation. On this news, shares of SolarEdge stock fell 2.3% to close at $199.46 on October 19, 2022.
As a result of SolarEdge’s wrongful acts and omissions, and the sharp decline in the market value of SolarEdge’s common shares, Plaintiff and other Class members have suffered significant losses and damages.
If you have purchased or acquired shares of SolarEdge and suffered a loss, are a long-term stockholder, have information, want to learn more about these acquisitions, or have any questions about this notice or your rights or interests regarding these matters, please contact Brandon Walker or Melissa Fortunato by email at firstname.lastname@example.org, phone at (212) 355-4648, or by filling out that contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the company, please visit www.bespc.com. Lawyer advertising. First results do not guarantee similar results.