Nextracker (US:NXT) Prnewswireยท2025-01-08 15:48Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Nextracker Inc. due to allegations of violations of federal securities laws, particularly concerning misleading statements about the company's business and financial performance [2][4]. Group 1: Allegations Against Nextracker - The complaint alleges that Nextracker and its executives made false or misleading statements regarding the severity of project delays impacting the company's business and financial results [4]. - It is claimed that permitting and interconnection delays significantly impaired Nextracker's ability to convert backlog into revenue at historical rates [4]. - The lawsuit asserts that Nextracker could not offset the negative impacts from project delays through increased client demand as previously claimed [4]. - The company allegedly lacked the competitive advantages that were said to protect it from industry-wide challenges [4]. - Consequently, the defendants are accused of lacking a reasonable basis for their positive statements about Nextracker's business outlook [4]. Group 2: Financial Performance - On August 1, 2024, Nextracker disclosed a sequential revenue decline from $737 million in Q4 2024 to $720 million in Q1 2025 [5]. - Nextracker's GAAP gross profit also fell from $340 million in Q4 2024 to $237 million in Q1 2025 [5]. - Notably, Nextracker did not raise guidance for the first time since going public, indicating a potential slowdown in growth for the remainder of the year [5]. Group 3: Market Reaction - Following the announcement of the revenue decline, Nextracker's stock price dropped approximately 15% over two trading days [6].