First Solar, an Arizona based solar panel manufacturer, announced on Monday that it has entered into a Memorandum of Understanding (MOU) to pay $350 million in claims for a class action lawsuit filed in 2012.
The lawsuit claimed that First Solar executives and officers misled shareholders between April 2008 and February 2012. The suit states that First Solar inflated its stock price by concealing design defects and reporting misleading financials for nearly four years.
The parties agreed to negotiate in good faith to execute definitive stipulations of settlement and related documents to be filed with the court. The settlement will not contain any admission of liability or wrongdoing and will provide that upon final approval, it will be dismissed with prejudice. The settlement is subject to approval by the United States District Court for the District of Arizona.
First Solar Chief Executive Officer, Mark Widmar, said, “it is prudent to end this protracted and uncertain class action litigation process, and focus on driving the business forward.”
First Solar said related lawsuits by plaintiffs that chose to sue on their own rather than join the class action, and by plaintiffs suing company officials in a derivative lawsuit, remain pending.