Nextracker Inc.

On August 1, 2024, Nextracker released its first quarter fiscal 2025 financial results, revealing a significant decline in revenue and GAAP gross profit, stating that it was “taking longer for projects to be fulfilled [due to] construction permits or interconnection delays.”

On this news, Nextracker’s stock price fell $7.02, or 15%, over two consecutive trading days to close at $39.81 per share on August 5, 2024, thereby injuring investors.

Then, on October 30, 2024, Nextracker released its second quarter fiscal 2025 financial results, disclosing further decline of revenue and profit, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the impact of project delays on Nextracker’s business, financial results, and prospects was far more severe than represented to investors; (2) that permitting and interconnection delays had materially impaired Nextracker’s ability to convert backlog into revenue at historical conversion rates; (3) that Nextracker had been unable to offset the negative impact from project delays through increased client demand and the purported ability to pull forward its other projects in the manner represented by defendants; (4) that Nextracker did not possess the competitive advantages which purportedly shielded it from industry-wide headwinds or the ability to effectively offset the adverse effects of project delays as claimed by defendants; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.