Summary
First Solar, Inc. (FSLR) has entered into an agreement in principle to settle a previously disclosed lawsuit, the "Opt-Out Action," for $19 million. This settlement aims to resolve claims brought by certain stockholders who opted out of a related class action lawsuit. The company had previously accrued $13 million as an estimated loss for this litigation as of March 31, 2020, representing the lower bound of potential costs.
Key Highlights
- 1First Solar has reached an agreement in principle to settle the "Opt-Out Action" lawsuit.
- 2The settlement amount is $19 million.
- 3This settlement requires dismissal with prejudice and mutual releases of claims.
- 4The company had previously reserved $13 million as an estimated loss for this litigation.
- 5The settlement includes no admission of liability, wrongdoing, or responsibility by First Solar or its directors/officers.
- 6The settlement is contingent on the negotiation and execution of a definitive settlement agreement.
- 7This agreement does not impact the previously filed class-wide settlement for the "Class Action" lawsuit.
Frequently Asked Questions
The "Opt-Out Action" is a lawsuit filed against First Solar, Inc. and certain current and former directors and officers by stockholders who chose not to participate in a larger class action lawsuit.
First Solar has agreed to pay $19 million to settle the lawsuit. The company had already accrued $13 million of this amount as an estimated loss as of March 31, 2020. This means an additional $6 million may be recognized as an expense related to this settlement, depending on when it is finalized and paid.
No, the proposed settlement explicitly states that it contains no admission of liability, wrongdoing, or responsibility by any of the defendants.
No, the agreement is in principle and is subject to the negotiation and execution of a definitive settlement agreement among the parties. Therefore, the $19 million payment is not guaranteed until this definitive agreement is reached.