Massive Class Action Lawsuit Filed Against First Solar

The green boondoggles continue

(NLPC) Securities law firms are lining up to get a piece of the action after a class action lawsuit was filed against federally subsidized First Solar, Inc., allegedly because the company failed to disclose the massive costs it was incurring due to defects in its solar panels, leading investors to believe the company’s stock was worth more than its actual value.

According to the complaint, First Solar: “deceive(d) the investing public…, artificially inflated(d) and maintain(ed) the market price of First Solar securities…, and cause(d) Plaintiff and other members of the Class to purchase First Solar securities and options at artificially inflated prices.”

First Solar has received well over $1.5 billion in federal loans/ loan guarantees based on faulty products and artificially inflated prices. The reckless behavior of the Obama administration in providing all these crony loans is going to do more to damage any alternative energy companies than help.

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2 Responses to “Massive Class Action Lawsuit Filed Against First Solar”

  1. Gumball_Brains says:

    It’s worse than we thought…..

    Many Americans were upset when they learned First Solar, an Arizona-based solar panel manufacturer, received millions of dollars in loan guarantees from the U.S. government. Chances are, they’ll be even more unhappy when they find out the same company was given an additional $455.7 million loan guarantee to sell solar panels to itself.

    Wait. What?

    Yep. First Solar, an already heavily subsidized “clean energy” company, was given further government assistance in order to sell solar panels to itself.

    “The subsidy came from the Export-Import Bank, which President Obama and Harry Reid are currently fighting to extend and expand,” the Washington Examiner’s Tim Carney reports.

    How did that work? How did First Solar manage to land this deal?

    Carney explains:

    In 2010, the Obama administration awarded the company $16.3 million to expand its factory in Ohio — a subsidy Democratic Gov. Ted Strickland touted in his failed re-election bid that year.

    Five weeks before the 2010 election, Strickland announced more than a million dollars in job training grants to First Solar. The Ohio Department of Development also lent First Solar $5 million, and the state’s Air Quality Development Authority gave the company an additional $10 million loan.

    After First Solar pocketed this $17.3 million in government grants and $15 million in government loans, Ex-Im entered the scene.

    In September 2011, Ex-Im approved $455.7 million in loan guarantees to subsidize the sale of solar panels to two wind farms in Canada. That means if the wind farm ever defaults, the taxpayers pick up the tab, ensuring First Solar gets paid.

    Guess who the buyer was? If you said First Solar, please move to the front of the class.

  2. Gotta love the Obama Economy!

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