First Solar Inc. has agreed to settle a class-action lawsuit alleging it mislead investors during a boom period for the company, with the bill coming in at $350 million.
The case, initially brought by investor Mark Smilovits and eventually certified as a class action, was initially filed in 2012 and came after several years of Tempe-based First Solar (Nasdaq: FSLR) landing multiple deals to land massive solar power plant projects.
The lawsuit alleged First Solar officials mislead investors about the challenges the company faced in regards to replacing defective panels at those power plants. It was filed after the company reported it was paying more than $164 million in warranty claims on it panels during the fourth-quarter 2011.
The company at the time said between 4% and 8% of its panels were affected by a manufacturing problem.