Nextracker Inc. Faces Securities Fraud Lawsuit Impacting Investor Confidence

2025-02-16 companies

San Jose, Sunday, 16 February 2025.
Nextracker Inc. has been sued for securities fraud, affecting its NASDAQ stock performance and highlighting accountability issues for tech firms.

Legal Actions and Allegations

Multiple law firms have filed securities fraud lawsuits against Nextracker Inc. (NASDAQ: NXT) on February 15, 2025 [1]. The class action lawsuit, titled Weber v. Nextracker Inc., No. 24-cv-9467, is pending in the U.S. District Court for the Northern District of California [2][3]. The lawsuit alleges violations during the period from February 1, 2024, to August 1, 2024, including claims that the company failed to disclose severe project delays and their impact on financial performance [4].

Financial Performance and Stock Impact

The company’s financial challenges became apparent when they reported a revenue decline from $737 million to $720 million in fiscal Q1 2025, along with a significant decrease in GAAP gross profit from $340 million to $237 million [3]. Following these disclosures on August 1, 2024, Nextracker’s stock price experienced a sharp decline, falling from $46.83 to $39.81 by August 5, 2024, representing a 15% decrease [1][5]. The company also revealed that only 80% of their backlog is expected to be realized over the next eight quarters [1].

Current Market Position

As of February 14, 2025, Nextracker’s stock showed signs of resilience, closing at $47.30, marking a 3.03% increase [6]. The company currently maintains a market capitalization of $6.48 billion [7]. Recent insider activity has also drawn attention, with executive Bruce Ledesma selling 9,891 shares on February 10, 2025, for $455,480.55 [6].

Legal Proceedings and Investor Response

Investors who purchased Nextracker shares during the specified period have until February 25, 2025, to file for lead plaintiff status in the class action lawsuit [2][4]. Multiple prominent law firms, including Bleichmar Fonti & Auld LLP and Robbins Geller Rudman & Dowd LLP, are representing affected shareholders [1][3]. The legal proceedings are particularly focused on allegations regarding the company’s project delays, backlog conversion issues, and related financial disclosures [4].

Sources

Securities fraud Tech accountability