The current Trump administration’s tariff policies have created operating challenges for many companies, challenges that in at least some cases have translated into securities class action lawsuits. In the latest example, the solar panel company First Solar has been hit with a tariff-related securities class action lawsuit after the company experienced complications in its international operations due to the tariffs. A copy of the new First Solar securities class action lawsuit can be found here.
Background
First Solar is a solar technology company. It manufactures and sells photovoltaic (PV) solar modules that convert sunlight into electricity. In February 2025, the company announced that it would reduce production of Series 6 modules at its facilities in Malaysia and Vietnam to account for, among other things, the “uncertain U.S. policy environment following the 2024 U.S. elections,” and “a supply and demand imbalance for Southeast Asian Product.” First Solar nevertheless reassured investors that its primary market, the United States, enjoyed stable module prices.
On April 2, 2025, President Trump announced reciprocal tariffs on U.S. imports from all countries, including tariff rates of 24% and 46% on Malaysia and Vietnam, respectively, subsequently reduced to 10%. The company, according to the securities class action lawsuit complaint, continued to assure investors that the dynamic policy landscape presented a “long term favorable” for First Solar and actually “strengthened its relative position in the solar manufacturing industry.”
On February 24, 2026, First Solar announced its 4Q25 and full year 2025 financial results. Among other things, the company announced earnings that, according to the securities lawsuit complaint, “missed expectations by a wide margin.” The company also issued lower than expected FY 2026 revenue guidance, citing customer headwinds such as permitting delays under the Trump administration. First Solar’s share price declined on this news.
The Lawsuit
The complaint alleges that during the class period, the defendants made false or misleading statements or failed to disclose that: “(i) Defendants had overstated First Solar’s capacity to manage the impact of U.S. tariff policy on the Company’s business; (ii) Defendants understated the extent to which its responses to U.S. tariff policy, including the intentional underutilization of production facilities in Malaysia and Vietnam, and attempted relocation of production to the U.S., were likely to negatively impact First Solar’s projected performance in the 2026 fiscal year; and (iii) as a result, Defendants’ public statements were materially false and misleading at all relevant times.”
The complaint alleges that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The plaintiff seeks to recover damages on behalf of the class.
Discussion
This new lawsuit is not the first securities class action lawsuit to be filed in the wake of the current Trump administration’s implementation of its tariff policies. As discussed here, in August 2025, a plaintiff shareholder initiated a tariff-related securities suit against the industrial chemical company Dow. Similarly, in November 2025, a shareholder initiated a tariff-related securities suit against the auto retailer CarMax, as discussed here.
In addition, industrial clothing company Lakeland Industries was hit with a tariff-related securities suit in February 2026, as discussed here. In March 2026, a tariff-related securities suit was filed against the social media company Pinterest, as discussed here.
With the initiation of this new lawsuit against First Solar, there have now been a total of five tariff-related securities suits filed since August 2025, including a total of three so far in 2026. As also discussed on this site, most recently here, there have been a number of tariff-related enforcement actions filed as well.
Since the Trump administration began implementing its tariff policies last year, the tariffs have come to represent an important source of potential corporate litigation and regulatory enforcement exposure.
What makes this new lawsuit particularly interesting and relevant is that it is only now just being filed, even after various courts have declared the Trump administration’s IEEPA tariffs (discussed here) and Section 122 tariffs (discussed here) to be unlawful. The new complaint underscores the fact that notwithstanding the various adverse court rulings on the tariffs, the risk of further tariff-related litigation continues.
The new complaint also highlights the challenges companies face in trying to manage the impact of the tariffs on their operations and financial results. This company is alleged not only to have soft-pedaled the likely impact of the tariffs on its international operations, but also is alleged to have understated the impact that its efforts to respond to the tariffs, by shifting production to the U.S., would have on its financial performance. The shifting tariff levels and changing legal bases for the tariffs further complicate things for operating companies, as they try to adjust their strategies to trade policies that are both variable and difficult to predict.
In any event, notwithstanding the adverse track record of the prior Trump administration tariff policies in court, the Trump administration has made it clear that it intends to continue to deploy tariffs as an important element in its global trade policy. Following the prior adverse judicial rulings, the Trump administration has shifted its plan to impose its tariff policies to rely on Section 301 of the Trade Act of 1974. The U.S. Trade Representative has already launched Section 301 investigations of the trade policies of a number of countries, and has imposed a number of new tariffs, based on the premise that the tariffed countries had engaged in unfair trade practices (particularly involving the alleged use of forced labor). These new tariffs present their own complications and compliance challenges, among other things by adding a layer of complexity to supply chain management.
The bottom line is that the Trump administration will continue to deploy tariffs, and that tariffs will continue to challenge operating companies. The likelihood is that issues arising out of the administration’s tariff policies will continue to give rise to potential disclosure-related liability exposure for many companies. The likelihood is that we will continue to see tariff-related litigation in the months ahead.
One final note: First Solar is not unfamiliar with securities class action litigation. As discussed here, in January 2020, the company settled a prior, long-running securities class action lawsuit for $350 million.