SolarEdge Must Face Investor Suit on Saturated Inventory Claims

SolarEdge Technologies, Inc. must defend a securities fraud lawsuit alleging its executives knowingly misrepresented distributors’ too-high inventory levels, a district judge said.

The investors sufficiently alleged that company executives knew the distributors it sent products to had a saturated inventory while characterizing their levels as “low” throughout 2023, said Judge Gregory H. Woods in the US District Court for the Southern District of New York on Wednesday.

The investors sufficiently plead that SolarEdge forced its product on distributors, particularly at end of quarter periods, which helped it achieve its revenue targets, the judge said. Distributors are SolarEdge’s main customers that ...