First Solar Faces Investor Suit Over ‘New and Improved’ Panels

First Solar Inc’s board of directors is facing allegations that it misrepresented the prospects of new solar panels the company was producing, according to a lawsuit in an Arizona federal court.

The stockholder derivative action filed Tuesday said that Tempe, Ariz.-based First Solar touted “new and improved” solar panels, known as the ‘Series 6' module, as being more energy and cost-efficient. Statements in press releases, public filings and investor calls signaled that the transition to the new product was going well, according to the filing in the U.S. District Court for the District of Arizona.

However, investors say they suffered ...