Nextracker is a provider of software solutions and products that help solar panels track the sun’s movements across the sky to optimize the performance of utility power plants.

The class action lawsuit against Nextracker claims that, during the Class Period, the defendants made false and/or misleading statements and failed to disclose that: (i) the impact of project delays on Nextracker’s business, financial results, and future outlook was far worse than investors were led to believe; (ii) permitting and interconnection delays had significantly hindered Nextracker’s ability to convert its backlog into revenue at the historical rates it had promised; (iii) Nextracker was unable to offset the negative effects of project delays through increased client demand or by accelerating other projects, contrary to what was communicated by the defendants; (iv) Nextracker did not have the competitive advantages that supposedly protected it from industry-wide challenges or the ability to mitigate the adverse effects of project delays as claimed by the defendants; and (v) as a result, the defendants’ positive statements regarding Nextracker’s business, financial results, and future prospects were unsupported.

The lawsuit further alleges that on August 1, 2024, Nextracker disclosed that its revenue had decreased sequentially, from $737 million in the fourth fiscal quarter of 2024 to $720 million in the first fiscal quarter of 2025. Similarly, Nextracker’s GAAP gross profit dropped from $340 million in the fourth fiscal quarter of 2024 to $237 million in the first fiscal quarter of 2025. Notably, Nextracker also failed to raise its guidance for the first time since becoming a public company, signaling a slowdown in growth for the remainder of the year. Following this announcement, Nextracker’s stock price fell by about 15% over two trading days.