Nextracker Faces Securities Fraud Lawsuit Amid Investor Concerns

Nextracker Faces Securities Fraud Lawsuit Amid Investor Concerns

2025-01-04 companies

King of Prussia, Saturday, 4 January 2025.
Kessler Topaz Meltzer & Check has filed a securities fraud class action lawsuit against Nextracker Inc., alleging misleading statements about project delays and financial results, affecting investors.

The lawsuit, filed on January 3, 2025, in the United States District Court for the Northern District of California, targets Nextracker Inc. (NASDAQ: NXT) [1][4]. The class action covers investors who purchased Nextracker securities during a specific period between February 1, 2024, and August 1, 2024 [1][2]. Multiple law firms, including Kessler Topaz Meltzer & Check, LLP, and Kahn Swick & Foti, LLC, are actively involved in representing affected investors [1][2].

Financial Impact and Allegations

The lawsuit stems from significant financial developments revealed on August 1, 2024, when Nextracker reported concerning quarterly results. The company’s revenue declined from $737 million to $720 million, while GAAP gross profit dropped from $340 million to $237 million [2]. Following this announcement, Nextracker’s stock price experienced a dramatic fall of approximately 15%, plummeting from $46.83 to $39.81 per share over two trading days [2][5].

Core Claims and Investor Impact

The lawsuit alleges that Nextracker and its executives failed to properly disclose the severity of project delays and their impact on business operations [3]. Key allegations include misleading statements about permitting delays affecting revenue conversion rates and the company’s inability to offset negative impacts through increased client demand [3][4]. The legal action particularly focuses on investors who have suffered substantial losses, with some firms specifically targeting those with losses exceeding $100,000 [2].

Next Steps for Investors

Affected investors have until February 25, 2025, to file for lead plaintiff status in the class action [1][2][5]. Multiple law firms are offering free case evaluations and are operating on a contingency fee basis, meaning they only collect fees if they successfully recover damages for investors [3][5]. The case, formally known as Weber v. Nextracker Inc., No. 24-cv-09467, represents a significant legal challenge for the solar tracking technology company [2].

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Nextracker securities lawsuit