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FIRST SOLAR, INC. 8-K Report, Corporate Update (Jun 5, 2020)

Reports
Other Events
Filing Date
Filed June 5, 2020
Period End
June 3, 2020
Security
FSLR
In the record · 2016–202610-K1110-Q328-K110

FSLR filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 110 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jan ’17Jan ’17
  2. Leadership change8-K · Apr ’19Apr ’19
  3. Leadership change8-K · Apr ’22Apr ’22
  4. Material agreement8-K · Feb ’26Feb ’26

01—Abstract

Summary

Summary of the 8-K filed June 5, 2020. Cited figures are marked; the original filing is the authoritative source.

First Solar, Inc. (FSLR) has entered into an agreement in principle to settle a previously disclosed lawsuit, the "Opt-Out Action," for $19 milliona.

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 millionb as an estimated loss for this litigation as of March 31, 2020, representing the lower bound of potential costs.

02—Key points

Key Highlights

  1. First Solar has reached an agreement in principle to settle the "Opt-Out Action" lawsuit.
  2. The settlement amount is $19 million.
  3. This settlement requires dismissal with prejudice and mutual releases of claims.
  4. The company had previously reserved $13 million as an estimated loss for this litigation.
  5. The settlement includes no admission of liability, wrongdoing, or responsibility by First Solar or its directors/officers.
  6. The settlement is contingent on the negotiation and execution of a definitive settlement agreement.
  7. This agreement does not impact the previously filed class-wide settlement for the "Class Action" lawsuit.

03—Questions

Frequently Asked Questions

  1. What is the "Opt-Out Action" lawsuit?

    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.

  2. What is the financial impact of this settlement?

    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.

  3. Does this settlement mean First Solar admits to any wrongdoing?

    No, the proposed settlement explicitly states that it contains no admission of liability, wrongdoing, or responsibility by any of the defendants.

  4. Is the settlement finalized?

    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.

04—Continue

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