Current and former executives and directors of equipment maker SolarEdge Technologies Inc. face an investor’s derivative suit in Manhattan federal court alleging they concealed distributor order cancelations and other developments that would ultimately result in a low quarterly revenue outcome.
The complaint brought on behalf of nominal defendant SolarEdge, took aim at SolarEdge’s CEO Zvi Lando, its chief financial officer and seven board members with claims that between May and October 2023, they breached their fiduciary duties by touting growth in the company’s market in Europe despite the fact its European distributors didn’t need as much of the company’s inventory as had been anticipated. When the company finally acknowledged that the demand it expected wasn’t present in Europe, SolarEdge representatives said that as a result, it expected that its quarterly revenue, gross margin and operating income for the third quarter of 2023 to come in “below the low end of the prior guidance range,” $720 million to $730 million, down significantly from its earlier expectation that it would see those numbers come in the range of $880 million to $920 million for the quarter.
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